An outsourcing exercises success often depends on how the transition is implemented beginning with the announcement of a signed contract through the trans­fer of the factors of production to the implementation of operations. This is where the best-laid plans can fall apart.

In the term sheet and contract, the specific roles for each party in the transition were identified, what will be done, how it will be accomplished, where each will be done, and when each will be accomplished. Now its time to make the final statements of how those roles will be executed. Up to now, the account manager had very limited access to the organization, and then only through the project team. That has to change now. Together with the relationship manager, these two should begin to build the type of relationship that can weather the storms they will face.

The relationship manager should have developed a transition plan to smoothly move the factors of production to the provider smoothly. The provider, likewise, will have a transition plan. Together, the relationship manager and the provider s account manager should mesh the two plans into one that includes effective "change management" techniques, because outsourcing can both transform the organization and the way employees look at it. Up to this point, both parties have been negotiating. Now they should collaborate to execute a single plan.

The parties should have the full cooperation and involvement of the human resources function, or an outsource adviser, in counseling the employ­ees directly affected by outsourcing. Most large providers have a human resources function that will contribute to the transition as well. Together, they should also be responsible for implementing tightened security where it is needed to protect those employees and the organization's other valuable assets. The following are examples of issues that should be addressed:

Communication Issues

• How and when will the employees directly affected by the out­sourcing initiative be advised?
• How and when will the employees unaffected by the outsourcing initiative be advised?

Human Resources Issues

• What will be offered to each of the employees who:
• Will be asked to remain with the organization in another capacity?
• Will be asked to move to the provider?
• May be asked to move to the provider?  
• Will be terminated?
• How will the offers be presented?

Transition Issues

·         How and when will the employees, who will move to the provider, do so (for example, in a staged transition or one-time transition)?

·         How and when will the other (non-employee) factors of production be moved to the provider?

All these issues and more should be  covered in the fully documented transition plan.

OTHER ISSUES

The list of potential transition issues is endless. As the relationship manager and the account manager combine their transition plans, they should try to identify any issues that may have been missed. They might ask questions such as:

• What flexibility are we building into our plan?

• What alternative plans should be considered?

• How will we know if the transition is being implemented poorly?

• Do we have a contingency plan in case unforeseen problems arise?

• How does the organization respond to failure, real or perceived?

Another question that must be addressed is whether to transfer the internal unit in one coordinated movement or stagger the transition over several phases. A variation of the staggered approach is for the provider to be asked to run a test, or run in parallel for some period of time. Delays can kill outsourcing initiatives, and speed is important, so a single imple­mentation is preferred.

Staggered implementations might work if there is tremendous sup­port for the initiative and the change isn't critical, but unless there are overwhelming reasons to do it in stages, this approach is best avoided. There are several problems with this approach: (1) the employees are caught in between two employers (how would you feel?); (2) any remain­ing powerful opposing forces will see one last chance (if they can sabotage the first phase they might yet kill it); and (3) the benefits of outsourcing will be delayed. The providers want to get started—let them.

The issues of course are many and varied. It is therefore recommended that the templates provided by an established guide, such as the Call Center Management Toolkit, are used as a basis.