8 Keys To Making A Successful Outsourcing Transition
No outsourcing transition is simple.
Most, if not all, are complex.
But a successful outsourcing transition delivers.
It increases revenues, cuts costs, and boosts customer satisfaction.
It also frees up critical resources you can use to shore up activities designed to create a sustained competitive advantage.
And given today’s hotly contested marketplaces, creating a sustained competitive advantage is imperative if you want to survive.
Executing A Successful Transition
The trick to pulling off a successful transition is to do five things:
- Identify the obvious organizational barriers to a successful transition
- Identify the blind spots that can block a successful transition
- Align the cultures
- Set realistic expectations
- Manage change using a top down approach
Once you’ve identified these barriers, you obviously need to address them.
Your ultimate goal is to create an effective outsourcing situation that can grow and change with your company.
Below are 8 keys to doing that:
1. Create a vision for transition
Failing to create a vision for where outsourcing is taking you is among the top mistakes in transitioning. Without a clear vision, stakeholders may see the effort as a cost cutting measure. If that happens, your transition may fall flat.
2. Secure senior manager commitment
Securing senior manager commitment is a key early step. Stakeholders only commit to change as they see senior leaders do it.
You can secure senior leader commitment by demonstrating outsourcing’s benefits. To encourage commitment, show senior mangers what’s possible once the transition is executed.
3. Create a plan for managing change
Change is never easy. A well thought out plan shows stakeholders and managers that you recognize that subtle cultural differences at your business can derail a transition. Showing them how to overcome these challenges builds confidence in you AND the project.
4. Determine organizational readiness
Assessing readiness is among the transition’s most critical steps. Assess the organization from technical, mental, and cultural standpoints.
Then set realistic expectations and manage them actively. When setting deadlines and goals, under promise and over deliver.
5. Anticipate organizational risks
Organizations are vulnerable during transitions. Develop a plan for overcoming the risks involved. A key element of this plan is a strategy that deals with loss of control issues—both real and imagined.
Also, be on guard for a possible decline in performance and baseline services during the transition. Again, a plan to handle these changes helps.
6. Create an infrastructure for transitioning
You’ll need to manage the process of transition well to succeed—whether you’re outsourcing tech support or call center operations. To help manage the process, create a project-management infrastructure that establishes clear roles and responsibilities.
Also, determine who will manage the transition end-to-end and how it will be done. Mapping out what the process will look like after the transition helps, too.
7. Establish reporting/governance mechanism
You want to establish a reporting/governance mechanism that collects feedback accurately and discreetly from all key stakeholders. The mechanism should provide for executive oversight and guidance.
Establishing a steering committee is a good start to creating an effective governance mechanism. So is creating a management committee and a service delivery committee. Both can provide hands-on guidance during the transition.
8. Define success
Even if your transition moves ahead as scripted, it may not achieve the business outcomes that some expect. Avoid this problem. Define what success is and how it will be evaluated—both quantitatively and qualitatively.
Also, active and accurate measurement—including establishing key benchmarks for success—should be done both during and after the transition. Reporting keeps everyone on the right track and in the loop.
Outsourcing transitions are always challenging. Most are complex undertakings that leave your business vulnerable when occurring. But once completed, they deliver enormous benefits.
If all this sounds daunting, working with an experienced service provider that has proven track record increase your chances of executing a successful transition. So don’t be afraid to tap this expertise.
A smooth successful transition helps you achieve all the benefits outsourcing offers while containing costs.
Let us put our proven experience in providing tech support for small and medium size companies to work for you. Request a quote from our sales team.