Is Monetary gain, the only salient aspect of outsourcing the collection of receivables?
Pareto's Law ( “ The Pareto Principle”) is commonly known as the 80:20 rule. Typically in any organization: •20% of customers account for 80% of your turnover
•20% of customers account for 80% of your profits
•20% of customers account for 80% of your service and supply problems It is important to know is which customers fit into which category and then to manage them accordingly. Highly satisfied customers who perceive a high value in your products and services commonly make excellent advocates for your organization - nurture these customers and give the special treatment. Dissatisfied customers who perceive a low value in your products and services are potential saboteurs. These customers could have little or no loyalty and may actively 'engage' against your organization. Therefore you should seek to rebuild relationships and trust, and a new basis for a future relationship, or manage the separation with dignity, professionalism and integrity. (http://www.businessballs.com/crmcustomerrelationshipmanagement.htm) Accordingly, this will lead me to my research problem of “Outsourcing of collections effecting the customer relationship of Companies”
Objective of the Study
To obtain the feedback of the customer, whose outstanding/dues are being subjected to collection by a Debt Collection Agency (DCA), in the manner it was handled by such agency. The feedback of Companies, who obtains the services of DCA regarding the impact it has on such outsourcing and the resulting effect it has on it’s clients. To analyze the manner of operation of such Debt Collection Agencies in Sri Lanka
As my area of research is based on social science, I intend using the Inductive Method in my research.
A purpose of a research study is descriptive, explanatory or exploratory. Exploratory study is the best method of identifying as to what is happening. This method of study is also useful to clarify the understanding of a problem. I intend doing an exploratory study in my research. Saunders et al.(2007, p134)11, states that there are three principal ways of conducting exploratory research. They are, a search of the literature, interviewing “experts” in the subject & conducting focus group interview. There are several research strategies that are available for a researcher. Of these strategies, I intend using the Grounded Theory in my research.
How to gather Data ?
The sample I intend using comprises of 50 persons and they will be from the following categories.
Persons representing the Management, of the Banking sector, Telecommunication sector, corporate sector and persons outside these sectors. Also the customers of these sectors, representing various organizations (government, Private & other) in Colombo, suburbs and outstation and the Management of Debt Collection Agencies in Sri Lanka.
There are two types of data that are gathered. That is Primary Data & Secondary Data.
Gathering of Primary Data
Primary Data, is the data that are gathered by me during the research process. The following methods will be adopted in gathering primary data.
Semi structured and in-depth interviews
Gathering of Secondary Data
Secondary data, are data that are already in place.
In order to ascertain the secondary data, I will use the electronic media to access information of other countries as well as Sri Lanka. Also, secondary data will be obtained by analyzing the regulations and various legislation that is effective in our country.
Analyzing the Data Gathered
The method by which I intend to gather data are by way of questionnaire & semi structured and in depth interview. In the method of interview, it is very important to have the information collected to be validated by the respondent. This will be done in order to remove any...