An easy to understand invoice all make life easier for both you and the outsourcer. Too often I have seen cost models and the associated invoices require someone with a degree in mathematics, statistics and engineering to try and figure it out!
The best way to ensure you have an easy to understand invoice isbn investing the time upfront in having a clear contract, a clear pricing model and clear KPI’s.
The largest expense an outsourcer has are its people often representing up to 85% of their costs, and with call centre staff typically paid weekly or fortnightly, cash flow is important to the outsourcer.
Like most business the longer the invoice period the higher the cost to the outsourcer. As such its common to see invoice periods ranging from one week to one month.
Will typically range from 7 days to 60 days with the longer terms often factored into the pricing. Alternatively some outsourcers will often 60 day payment terms with discounts for early payments. Either way you are paying for the longer terms so if you can afford it, always opt for faster payment terms.