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VVM Group of Companies: An ally against municipal debt by Lior Woznica10 Years Agolior woznica, karin van de venter, van de venter
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Outsource
to experts CONCERN HAS BEEN EXPRESSED by political groups and experts alike
that many municipalities continue to battle debt and skills shortages, with
unacceptably high municipal debt undermining service
delivery.
A
national business process outsourcing strategy that leverages the expertise and
systems of an external service provider to supply and manage an organisation's
non-core functions would go a long way in solving this dilemma.
South
African municipalities are currently R28 billion in debt, a figure that the
auditor general has attributed to poor financial management and a lack of
proper processes. A solid credit control and debt collection policy would be
the first step in helping to alleviate this situation.
Business
process outsourcing providers are service-oriented, which means they are able
to help customers transform their businesses by leveraging third-party expertise.
Why
should municipalities attempt to set up internal credit management facilities when they can simply hand
the job over to specialists? By doing so, municipalities can identify and focus
on their key deliverables and their service to citizens.
Credit
management and debt collection rely on strong back-office processing
capabilities
and expertise in bulk data management and transaction volumes, coupled with a
robust call centre.
By
partnering with a specialist credit management BPO provider,
municipalities can form relationships with companies who have the ability to
deliver. There is no substitute for having access to the right information at
the right time.
BPO
optimises business performance by reducing costs and increasing service
quality. It helps companies to focus on their core areas and avoid unnecessary
capital expenditure. It
also provides quantifiable benefits through improved efficiencies, lower
overheads, and reduced payroll and benefit expenses. One of the top advantages
of BPO is that it enables access to proprietary workflow systems, process
reengineering skills, and innovative staffing and delivery models, coupled with
world-class technology delivered by experts in their fields.
But
municipalities considering outsourcing must first identify the processes core
to their business and retain control of them.
About
the author: Lior Woznica is financial director of VVM BPO. |