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Glossary

What is PAYG (Pay As You Go)?

Pay-as-you-go (PAYG) is a billing method which implies that a user only has to pay in advance for those services which he/she is interested in.  PAYG is not only immensely popular among telecommunication companies, but has also attracted businesses from diverse domains, such as hospitality, banking, and finance.  The credit that has been purchased in advance is used to pay for the services when those are availed or consumed.  If adequate amount of credit is not available at the time of availing the services, users might not be granted access to those services.

This billing method gained immense popularity in outsourcing industry primarily because it ensures elimination of charges that service providers do not specify in their contracts.  It is not a hidden truth that hidden charges or upfront costs have been major reasons behind ruined business relationships across the globe.  In this light, PAYG has emerged as the most reliable method to establish long lasting business relationships.  Not only it ensures elimination of hidden charges or upfront costs, but also ensures multiple payment options to users.  With the emergence of PAYG, businesses can establish strategic relationships with outsourced call centers, or any other service provider, and need not worry about any hidden costs that SLAs might not specify clearly.

The prime advantage of PAYG in outsourcing is it ensures transparency.  As users are asked to pay for services, which they intend to avail, in advance, it definitely eliminates the scope of confusion or misunderstanding between the parties involved in business relationships.  Apart from this, PAYG also helps in making informed business decisions regarding call center services.  Businesses expect their service providers or outside companies to draft an all-inclusive service level agreements before signing the contracts; however, on the other hand, service providers find it extremely inconvenient to convince clients regarding the unforeseen operational expenses or upfront costs.  To tackle this situation PAYG has certainly emerged as an idyllic solution.

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