Implementing a well-structured internal transition plan for working with an outsourced partner can significantly enhance the success of the new outsourced relationship. It requires careful planning, clear communication, and continuous monitoring to ensure that the objectives are met, whilst risks attached to the process are managed effectively.
Once the contract and service level agreements have been formulated and signed, a transition plan needs to be developed and put into operation. An internal team should be carefully selected, with roles and responsibilities assigned to each of the team members. The selection of knowledgeable internal team members about the functions being outsourced will help to ensure the smooth transition from internal team member to outsourced partner.
The transition plan should detail the functions being outsourced, the timing of the transition of individual tasks and activities, and the milestones that need to be met in the process. The transition plan should document the transition strategy and the transition schedule, whilst the execution phase of the transition plan should document the processes, workflows and standard operating procedures along with the flow of information, controls and approvals for each process that is being transitioned to the outsourced provider.
Throughout the transition process the use of key performance indicators and monitoring mechanisms, including gathering feedback from the internal team, the outsourced partner and other third parties should be utilised to determine progress against the transition plan. During transition, meetings and regular progress calls between the internal team and the outsourced partner should be held, findings, issues encountered and the tracking of progress and any slippage in the timeline, should be discussed and remediated.
The transition plan should include the post-transition phase, as the processes, tasks and activities settle-down in the post-transition world. Here the previously designed KPIs and Performance Metrics come into their own in monitoring progress and being able to measure the success of the transition. Regular reviews should be scheduled with the outsource partner where information gathered from internal and external stakeholders and other affected parties can be presented and analysed, in order to promote continuous improvement in the outsource arrangement.
A comprehensive end-to-end transition plan will help to ensure clarity, minimises risk, and facilitate a successful transition between internal and external resources.
