Centralization /(sɛntrəlʌɪˈzeɪʃ(ə)n/ noun - the action or process of bringing activities together in one place.
In the era of globalization and communication through technology, businesses no longer have borders and it's very common for companies to offer services from Germany to Zimbabwe, in multiple markets, and different continents. However, offering services in multiple countries leads to cooperating with a longer, more complicated list of partners.
Based on our experience, it is more reasonable to have a single primary partner for SMS messaging and two-factor authentication services that can cover all geographical markets, rather than finding a different provider in the same competency, but in the local market. Here’s why.
Communications and support
Having more than one main partner means different support contacts and account managers. This usually creates more work for call or support centers, and more escalation and time to solve any message delivery or service related issue. Cut down the communication time by choosing one main provider with a personal account manager included.
Technical point of view
More partners means more technical protocols and API´s. In general, this will increase the workload for IT departments or development teams to keep all of the APIs constantly updated. Work with a single provider, with unified technical protocols in all geographical markets to optimize IT operations.
Financial & contracts perspective
The more SMS and 2FA providers, the more invoices and financial agreements. This leads to a higher workload for accounting departments as they must keep different pre-paid accounts loaded with credit or deal with post-pay invoices, all with different payment terms. There is also currency risk, as each provider will invoice in their local currency. Prevent an oversized workload and reduce currency risk by centralizing to a single provider, which connects with mobile networks and hubs across geographical regions in which you operate.
To summarize, centralized SMS messaging and 2FA ultimately means lower indirect costs of maintenance and management costs.