Switching Outsourcing Providers

On November 23, 2011, in Outsourcing, by Business Development Group

As businesses should not take transitioning lightly or conduct it without thorough preparation and planning, they should also not stick with a bad deal or provider situation simply to avoid the cost and effort of making the transition." Anything can happen in an outsourcing venture; and if at first you failed during outsourcing, should you try again with a different provider? A number of business leaders are doing just that.

Recently, services customers are doing as much switching—be it transferring to a new provider or bringing work back in-house —as the answer to an agreement that’s become too costly or ineffective.

As businesses should not take transitioning lightly or conduct it without thorough preparation and planning, they should also not stick with a bad deal or provider situation simply to avoid the cost and effort of making the transition.”

Hereunder are pointers to take when deciding to make the switch to a different outsourcing provider.

Related article: How to Successfully Transition to Outsourcing

1. Step back

Analyze the situation and if outsourcing is still relevant, then consider switching providers than abandoning the strategy. If your reason to switch is service-matter rather than cost-related, it may be an indication of a deal not being met thus a prime factor to move away. If the factor is on the costs, arrange an honest or open conversation about the matter as deals may be renegotiated with the provider.

Related article: Steps to take before Outsourcing

2. Check the contract

Contracts include exclusivity provisions or some have clauses on discontinuance that contractually prohibit or limit transfer. Outsourcing contracts being set aside should be considered moreso on vendor’s obligation to assist in transition activities prescribing specific transition responsibilities. The deal that you signed may get in the way of the plan to switch providers or make it hard for the new provider in conducting knowledge transfer work.

  Related article: Call Center as a Marketing Channel

3. Calculate the Cost

Know and consider the consequences such as costs and delays. There is and always will be disruption thus consider the benefits as well as losses during transition.

Related article: Knowledge Process Outsourcing

4. Learn from it

Allow a smooth transition. And as you sign on the dotted line with the new provider, apply what you have learned. The results of the transfer to a new provider should have the specific and clear-cut grounds on processes, requirements and what needs to be expected. Think about what you need and make sure to get it.

Related article: Outsourcing Organizational Capability Assessment

 

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1 Response » to “Switching Outsourcing Providers”

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