MANAGING OUTSOURCING technologies as these plays a critical role in

TRANSITIONS the offshorability of any function.

LESSON 1– Transition Management
The systematic and disciplined process of LESSON 3 - Managing a Successful
transitioning people, processes, and Business Process Transition in a
technology from the client environment to Multinational Organization
the BPO environment.
THE CHALLENGE
Transition Management
Transition managers are responsible for Implementing any change program within a
coordinating any transformational changes in multinational company is a challenge.
a company. Dirty duties include managing
internal requests for change, consulting
management on the risk factors of Global vs. Regional
implementing proposed changes, such as ● Among global companies, the
upgrading software or changing customer selection of an outsourcing service
service policies. provider is the often the result of a
global project, yet the implementation
LESSON 2 — Transition Manager Roles has to be conducted locally.
and Responsibilities
Human Resources
•A transition manager manages migrations ● The transition to an outsourced
from donor location or organization to process model obviously has a major
outsourcing organizations, facilitating impact on the organization's staff
change and demonstrating the both permanent and contract.
transformational power of outsourcing.
Process
•They facilitate effective migrations and
demonstrate cost reduction benefits, making ● Global or multinational organisations
them the face of outsourcing to many. rarely have common,standardized
business processes across all
•Key responsibilities are Planning and geographies. Typically regional and
Strategy Development, Stakeholder local variations of a so-called
Communication, Process Mapping and standard are in use, often with local
Documentation, Resource and Knowledge variations in IT support. The very fact
Transfer, Risk Management, Timeline and that the process is being outsourced
Budget Management and Post-Transition is often the first indicator that process
Support and Optimization. standardization and quality issues
exist.
➤ Transition Manager Skills
• She needs to be a good communicator, as ● The contract with the service provider
the role requires extensive interaction with will include a description of the
the clients; services to be delivered, usually
couched in the “what” rather than the
• She needs to have strong Project “how” style. Therefore, details of how
Management skills, as most migrations are the process is currently performed
complex projects that require expert are normally excluded from the
management skills; contract. The agreement may also
include obligations for the service
• She needs to be comfortable in working in provider to improve or transform the
a cross-cultural environment, as most often, process to a common, standardized
the donor teams are based overseas; best-practice.

•She needs to have a very good

understanding of the existing processes and
Roles and Responsibilities transparency. Avoid overcomplicating
requirements and avoid
● The transition will have profound turning business changes programs
effects on organizational roles and into IT projects.
responsibilities. These will primarily
affect the function being outsourced Business Continuity
(e.g., the finance department), but
will also have a ripple effect on roles ● There are numerous risks associated
within other areas of the with transitioning from internal to
organization. external provider-driven service
delivery. Business continuity refers
● Managers of the affected staff to an organization' s capacity to keep
members will no longer have line their business running and maintain
responsibility; instead they will be their essential function during or after
receiving the service from the new the transition in case they experience
provider. Managers will not be able to disaster and other challenges.
“just ask” their staff about operational
issues as they did previously, ● The proactive process of identifying
because there now is an “arm’s a company's vulnerabilities and
length” relationship with the service hazards during a crisis is known as
provider. Old relationships have been business continuity planning. It is
broken and — as a result — important to maintain business
managers often feel disenfranchised. continuity in the face of unpredictable
New roles are now required to events
interface with the service provider
and create added value to the
business. Culture

● The extent of the change affecting ● Culture is always connected to how

retained staff cannot be people speak, their social norms,
underestimated. Extensive training manners, and behaviour in a society,
and coaching may be necessary to and it was acquired with the help of
impart new skills and competencies. social interactions. It becomes a
challenge because it can slow down
Service Levels the transition as they may react
differently because of their cultural
● Formal service levels are crucial differences.
performance management tools for
business process outsourcing.
Implementing these can be LESSON 4 – Transition Objectives
challenging due to unclear
definitions, process triggers,regional •Transition Objectives- Transfer of the
variations, andlack of measurement delivery of business process services from
experience. The service provider an internal function to an external service
must set up measurement tools and provider.
produce quality reporting •Balance Scorecard- A technique that has
been used successfully by leading
Technology organizations to manage change in their
support functions.
● Business processes often require
technology support, such as ERP
systems or software applications.
Service providers may implement
workflow technology for control and
Four types of Transition's Objectives Typical Regional Responsibilities from
1. Financial client side:
2. Customer
3. Operational Excellence - Develop a detailed project plan, aligned to
4. Learning and Growth the master transition plan.

Practical Framework for a Transition Project - Manage transfer of personnel, and monitor
to: introduction by provider.
1. Agree on its objectives and align them Agree how providers will interact with points
with those of the business. of contract.
2. Initiate and manage change to achieve
the objectives. - Understand approach to knowledge
3. Monitor and communicate progress during transfer and process stabilization; monitor to
the project. ensure effectiveness.
4. Build performance measures related to
the objectives. -Ensure provider implements local business
5. Implement an ongoing performance continuity plans.
management process, as part of
business-as-usual following transition. -Monitor service-level measurement and
management by provider
Transition organization Contract
- Contract wall charts that can be used as
● a contract transition could also be called a reference material in offices and project
Transition Agreement is a contract between rooms.
the company and contractor to continue their
service for a period of time after their original - Local service management and
contract ends. It is a legal agreement that governance.
outlines how a company will transition during -Manage and resolve issues, including
a merger or acquisition. escalation.

Organizational Structure
To enable meaningful contract awareness
Transition project among team members, the following
activities are recommended:
● A project transition plan is a strategic plan
that enables a smooth transition from a 1. Modular contract training sessions,
project's implementation to its maintenance focused on the needs of the team.
within a company or organization.
2. Contract handbooks that describe key
parts of the contract in business language.
LESSON 5 -Transition Approach
3. Contract wall charts that can be used as
Transition Approach Content of "Transition reference material in offices and project
out of the Box" rooms.
1. Partially Completed Project Definition/
Character Document for Regional Transition 4. Contract deliverables and obligations
Project. analysis highlighting what
2. Project Plan, Template, complete with each party has committed to deliver and
primary activities required to be completed. when.
3. Project Status reporting pack.
4. Project briefing pack.
5. Contracting Training Material
LESSON 6 - Client/Provider Relationship

● Transition success relies on strong

client-provider relationships.

● Service providers often aim for a

partnership-style relationship during
the bidding process.

● However, genuine partnership

should be earned rather than
assumed.

● It's common for clients to feel

overwhelmed by service provider
staff during transitions

To maintain control and achieve desired

relationships, use these techniques:

● Implement a governance meeting

structure for regular joint client-
provider meetings.

● Maintain senior management contact

between client and provider.

● Monitor and manage service provider

delivery performance against
contract commitments.

● Manage changes to the transition

project, plans, and contract formally.

● Document client approvals and joint

agreements in accessible files rather
than emails.

● Formality in managing
commitments and changes helps
build a strong, professional
partnership.

● Balancing flexibility with contract

compliance is essential for success.

● A world-class service provider's

knowledge and flexibility can benefit
the client within the agreed
framework.