Phases of Migration During Outsourcing

On December 23, 2011, in Outsourcing, by Business Development Group
The first phase of the migration effort lays down the foundation for carrying out the actual transition. It needs to start by defining a project charter, vision and project planning document. The organization also needs to do internal due diligence and document "as-is" workflows and processes. This is done in order to develop a detailed understanding of the organizations' operations, policies and procedures. Subject matter experts (SME) should visit and interview staff and develop understanding of the operating environment. The SMEs should also be supplemented by IT and systems experts.

The first phase of the migration effort lays down the foundation for carrying out the actual transition. It needs to start by defining a project charter, vision and project planning document. The organization also needs to do internal due diligence and document "as-is" workflows and processes. This is done in order to develop a detailed understanding of the organizations' operations, policies and procedures. Subject matter experts (SME) should visit and interview staff and develop understanding of the operating environment. The SMEs should also be supplemented by IT and systems experts.

Once the decision to outsource business functions has been made to an offshore service provider and the strategy has been decided , comes the tough part. It’s where rubber meets the road and the time to get one’s hands dirty is nearby. The migration process is the key to making the offshore BPO initiative successful. The process and approach that one adopts for migration will depend on the offshore strategy adopted by the organization. Hereunder are the key activities during BPO implementation;

Phase 1: Outsourcing Pre-Migration

The first phase of the migration effort lays down the foundation for carrying out the actual transition. It needs to start by defining a project charter, vision and project planning document. The organization also needs to do internal due diligence and document “as-is” workflows and processes. This is done in order to develop a detailed understanding of the organizations’ operations, policies and procedures. Subject matter experts (SME) should visit and interview staff and develop understanding of the operating environment. The SMEs should also be supplemented  by IT and systems experts.

Read related article: Steps to take before Outsourcing

This phase should also outline in precise detail the discrete services within the business functions that will be outsourced and how this interaction will now change. It is critical to outline the scope and get a clear understanding as to the extent of process transfer. For healthcare organizations, they will also need to understand the implications for HIPAA and other regulatory requirements for business functions that are being outsourced.

Read related article: How to Successfully Transition to Outsourcing

The pre-migration phase also involves selecting the right vendor to partner with, if any. Hence activities such as benchmarking, vendor research, negotiations and contract finalization need to happen in this phase. The organizations should consider issuing an RFI (Request for Information) and subsequently and RFP (Request for Proposal) based on the specific business needs and requirements. The RFI is undertaken with the goal of narrowing down the number of vendors to whom it wishes to issue an RFP. The RFP needs to be very specific outlining the detailed requirements also focus on how the recipient will address those areas where business needs are unique in nature. Some organizations also include a term sheet in the RFP to have an early view of what the vendor’s stand on certain issues may be.

Read related article: Call Center as a Marketing Channel

The next in the process would be to develop and negotiate the outsourcing agreement. The importance on this cannot be overemphasized and as it is said, “the devil is in the details”. Outsourcing agreements, specially with offshore vendors run into numerous pages. Hence, it is important to read, understand and clarify all the fine print. The nature of the agreement will depend on the contractual relationship and specific business processes being outsourced. Many organizations will use a master agreement which serves as a blanket and then use multiple other agreements for different business functions. Master agreements are generally advisable for offshore contracts, as requirements, both technical and legal may be different across countries. The master agreement contains and helps clarify basic business relationship issues. If only a single business function is being outsourced, organizations will use a single agreement.

Read related articleOutsourcing Services Effectively

It should be noted that organizational resistance is the biggest single resistance to outsourcing, not only because  of skepticism about return of investements but also due to the resulting uncertainty and the added perception of an impending reduction in workforce. This risk and perception can be mitigated with a strong organizational change management plan. Confidentiality and information dissemination will be very important if the organization wants to avoid panic among its staff. To be sure, changes are required in the ranks of technical and professional personnel and re-training will be required in many cases.

(Next: Phase 2 – Outsourcing: Migration)

In-house or to Outsource? Know the difference!

Meet outsourcing Casey!

 

2 Responses to “Phases of Migration During Outsourcing”

  1. I simply want to say I am just beginner to blogging and site-building and seriously liked your page. Almost certainly I’m planning to bookmark your blog post . You actually come with really good well written articles. Thanks for sharing your blog site.

  2. I just want to mention I am just new to weblog and definitely savored your web page. Almost certainly I’m likely to bookmark your blog . You certainly come with beneficial writings. Kudos for revealing your blog.

Leave a Reply

Premium WordPress Themes



Premium WordPress Themes