The Operative Word In
Workaround Is Still... Work

Workarounds are used to compensate for a lack of interoperability. As the name suggests, they are compromises. By definition:

A workaround is typically a temporary fix that implies that a genuine solution to the problem is needed.

Workarounds are used in the collections outsourcing process because collections partners use different software systems.

Five Common Workarounds
Here are five common workarounds and their attendant problems and limitations:

1. Writing Interfaces
Writing interfaces is expensive. In addition to the monetary cost, the time spent creating interfaces delays on-boarding new collections partners. Further multiplying the costs of this workaround, the process must be repeated for each new collections partner as well as every time a partner changes software or their software is modified, e.g., upgrades and new releases.

2. Relying on the Use of an Open or Proprietary Data Standard
Data standards require that every software provider “write to” the standard and “support” the standard, i.e., never deviate from it. Unfortunately, many companies choose not to support the standard while others employ different versions of the standard formats. Even minor customization of data formats by users can undermine the efficacy of the standard. As a result, not all of the transferred data is automatically integrated into the receiver’s database and must be manually entered.

3. Employing People to Manually Move or Input Data
Any human involvement in data handling is expensive. Human intervention causes delays and is susceptible to inevitable errors. Resolving those errors takes more time, causes more delays, and adds more cost. Furthermore, manual processes require supervisory and management oversight, adding to the overhead burden.

4. Relying on Spreadsheets to By-pass or Supplement Software
Many forwarders and collectors transfer account data from their collections software into an Excel spreadsheet in order to analyze it and send it to their collections partners. However, using an Excel spreadsheet or any other “external” method takes unnecessary time. In addition, the report or analysis data from the core system gets excluded, severely limiting the ability to add value from the data.

5. Choosing Collections Partners Based on Software Compatibility
Numerous collections agencies and attorneys get frozen out of working for certain forwarders because their software does not allow them to adequately report status and results back to the forwarder. Notably, account and claims forwarding “networks” have formed around who uses what software. This is an antiquated concept. Who gets the business should be based on the capabilities of the collectors, not the compatibility of their software. If you are using any of the above workarounds, EqX can eliminate them, and their attendant limitations and costs.