Is Transition Management really that important?

Don't assume that laying out a robust plan during negotiation and having a supplier side transition manager will suffice. This is a basic requirement if success is to follow. The second issue is a little more difficult. Whilst seasoned project managers may be fairly accessible, direct experience of the outsourcing transition process is harder to come by, but immensely valuable to managing an outsourcing transition effectively. Your retained organization will be the internal face of the new outsourced world. They will be expected to manage the deal, own end to end processes, champion the solution, adopt a one team mentality and continue end-user education among many others. They may also be expected to deliver on these goals working with a large offshore labor component, which brings a cultural challenge most will have not faced before, and are thus ill prepared for presenting a unique coaching challenge.

Equally, if there is insufficient, inefficient or ineffective governance in place from day one, your organization's ability to achieve timely and effective resolution of transition issues is significantly eroded, and the transition process itself jeopardized. The right governance teams need to include empowered decision makers and people who know the contract and schedules inside out from day one. Research shows that governance and relationship issues alone can account for a 40-50% value leakage on the average outsourcing contract. Common symptoms are delayed transition, which erodes the business case, leads to messy and inconsistent communications and compromises ability to properly manage the people and processes involved in and impacted by the outsourcing initiative.