Effective Transition Management in Outsourcing - It’s a 2-Way Street!

The successful closure of any outsourcing deal is merely the first step, in the effective management of transitioning of services from the company in-house team to the selected outsourcing service provider.

Many managers, surprisingly tune-off, once the outsourcing deal is struck, much to the detriment of that process. They fail to remain vigilant during the crucial phase of transition management. Translating the outsourcing deal, into a viable operational process is indeed critical.

The key success factor is the realization that, managing the transition, is not merely the responsibility of the service provider. Managers need to recognize that transitioning is a joint effort and requires the complete involvement & commitment of both the client organization and the service provider.

Over the years I have come across numerous instances, wherein the client managers, seem to feel that their job is done, once the deal is signed. The onus shifts completely on to the service provider, thereafter. Yes, the major impetus, in effecting a smooth transition hinges to a great extent on the experience and competence of the service provider. But such a transition is doomed to fail, if it is perceived as merely a one-way-street. Any transition, in order to be successful, needs a joint commitment and active involvement of both parties.

Every transition process will encounter a host of hurdles which need to be quickly identified and resolved. While the vendor may have past experience of doing many transitions in the past, one must recognize that each transition is unique since there are two different parties involved and the challenges differ for each transaction. Recognizing this fact by the managers is the first step in successful transition management.
I have attempted to put down some very basic issues that must be kept in focus while attempting a successful transition management process.

1.Get the right team in place

• Successful transition, hinges completely on having the right people at the right place and at the right time. It is also important to ensure that the transition team comprises of people with the required seniority as well as expertise to manage change.
• Besides the mandatory technical expertise, it helps considerably if the team members have prior international experience and direct customer interactive experience.

2.Foster a positive work environment:

• Change always invites hostility from some segments within the client’s operational environment. Conduct regular team building activities to foster better understanding, open communication and working relationship. Open communication of the future plans and team building measures would help to reduce the inherent hostility and help to build an effective team.

3.Facilitate Interactivity

• Don’t make the transition a one way street where the incumbent team is the only one sharing knowledge. Encourage the incoming team to share their learnings at regular intervals to gauge how effective the learning process is. These playback sessions may include the incoming team making a presentation explaining the application, business processes and flows, use cases, operations etc.

4.Address communication and cross cultural issues –

• These are the most overlooked and hardest ones to deal while transitioning the services to an outsourcing service provider. These issues create communication challenges, breed mistrust and jeopardize the entire engagement. Arrange cross cultural training for both vendor and customer teams. This should be done in the initial stages of the transition itself to lessen the risk and reap more benefits.

5.Perform reviews diligently

• Ensure review/inspection is done regularly at each stage of the transition. This will ensure that communication is prompt and clear and will also ensure problem identification and quick corrective action.

These are some very basic do’s which, if done diligently, will ensure effective management of transitioning of services from the company in-house team to the selected outsourcing service provider.

For more information about our services please contact:

Hanno de Vriend
BPO Director
H.deVriend@amicorp.com

Fernando Cancino
BPO Sales Executive
F.Cancino@amicorp.com