IT Outsource Transition ? It's just another project.....

Most IT executives understand outsourcing out to a vendor is no simple journey, but how many understand exactly what pitfalls they face and how to deal with them?

So, what are these challenges?

1. Template based Approaches to transition

Half way through a recent transition, It was very noticeable the transition team had no interest in what we do as a company as long as it matched the vendor provided templates. You must remember most deals are signed on cost and transition time and both must be LOW and to do this they cut corners on the transition piece which is usually the most expensive and time consuming phase. The result? standard transition, aggressive schedules, misplaced optimism and a lack of clarity on the expected outcome.

2. Process

Processes will always differ; the vendor team will also have different opinions. It is critical that these processes are defined, matured and agreed well in advance to avoid confusion and frustration from both sides. It surprises folk how long this phase takes, but the potential dangers far outweigh the effort put in at the early stage.

3. People and Potential for Hostility

Transition is a very emotional and political period of the outsource. The knowledge base is usually with the incumbent team and co-operation is key to making this work. Many Transition experts will always advise on a retained transition team incentivized to making the initiative work. HR have a huge part to play here and it is essential companies have experience transition HR teams in place to manage the process carefully. This is the one of the most turbulent periods of a transition and it is vital legally and contractual you are in a good place.

4. Knowledge Base

Do we have the documentation required is a key question? If not, then this will significantly elongate and complicate any transition. In addition, this will only be made worse if the vendor must spend unexpected periods of time creating and learning new services and processes. The cost save simply gets negated further leading to lack of interest back at the vendor's base.

5. Senior Management Support

One of the key challenges is to keep the senior managers on both sides focused. We all get distracted during our working week, but a transition of this magnitude can have huge implications for the morale, services and cost base of a company. Executives who treat transition as just another work stream have been dealt harsh realities as the political and emotional tidal wave hits when a transition starts to stagnate.

6. Lack of Due Diligence

You will see the signals on this challenge early even before the contract is signed. How can you provide a cost without digging deep into the knowledge base, the services and the expectation? It is surprising how many assumptions are made which come back and bit later in the service. This is usually down to an eager sales team looking for that signature or the laid-back service manager who accepts any service without discussion with the service provider.

So, what do you do???

·               Training across all teams on how the transition phase will work

·               A good cultural team blend (Senior managers, Transition Experience, HR)

·               Team Building (Break the Them and Us attitude)

·               Be clear and transparent with the plan

·               Encourage Documentation and build the knowledge base

·               Review all documentation and processes forensically

·               Make all the sessions interactive. Encourage openness amongst both sides

·               Focus from senior management is crucial        

All pretty straightforward you say, but it is surprising how frequent these challenges occur…. Recognizing these facts is the key to successful transition management….