EquaTerra's New Outsourcing Audit Helps
Outsourcing Buyers Identify and Recover Invoice
Payment Overages
March 18, 2010 09:45 AM Eastern Daylight Time
HOUSTON--(EON: Enhanced Online News)--EquaTerra, a business advisory firm known for helping
organizations optimize internal support functions, today announced a new Outsourcing Audit service offering which
helps outsourcing buyers discover invoice inaccuracies and recoup overpayments if they act quickly.
EquaTerra has observed a nine percent error rate in outsourcing service provider invoices. While invoice
inaccuracies are largely inadvertent, they can equate to enormous payment overages. For example, a recent audit
helped a top energy company recover $1.5 million, which represented 1.5 percent of its monthly fees. Another audit
enabled a healthcare company to regain $1.6 million, 3.2 percent of its first year fees.
Moving rapidly is key to recouping invoice overpayments, according to Mike Beals, Vice President of EquaTerra.
Said Beals, “Typical outsourcing contract clauses require a client to inform its service provider of invoice errors
within 60 days of receipt of the invoice and to recover overcharges within 90 days. After that, the overage cannot be
recovered. With such potentially large amounts of money at stake, an invoice audit can be especially valuable for
outsourcing buyers going through or just completing an outsourcing transition, facing any significant change in scope
or pricing or approaching a negotiation deadline with its service provider.”
The Outsourcing Audit process is completed in a few weeks and is comprised of three steps: 1) data collection; 2)
data analysis; and 3) presentation, during which EquaTerra provides the client with a full report, including the data to
present to its service provider for overage repayment and recommendations for invoice process improvements. For
more information on the Outsourcing Audit, please contact Mark Voytek at 513-259-3465.
About EquaTerra
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