Re: In the back office, lots of software, plus lawyers
Thank you for your comment. Yes, usage, whether via number of transactions or number of accounts, is critical, particularly under a service bureau arrangement. That is why it is vital to monitor your firm's activity, especially as you come close to renewal with a service bureau operator. Trying to forecast transaction or account growth over even the next three years can be tricky, depending uon whether the firm plans to grow organically or through acquisition. Of course, that is why some companies operate their core applications in-house as that gives them more control over utilization.
Then, when or if it comes to de-conversion from one service bureau operator and converting to another, that can be a challenge. The company really needs to have its ducks lined up, because the vendor from which you may be converting will try to extract every last farthing simply to provide conversion files to the new processor. That is why I recommend a company include as part of its initial contract a specific amount or percentage for de-conversion costs in the future. Bennett