Okay, so you have decided to outsource some of your startup’s operations. And you have signed up with a provider that you believe will deliver. So, what’s the next thing you need to do to get a strong start with the outsourcing partnership?
Well, you need to have a transition plan for it. But what exactly is it and how do you develop it? Let’s go deeper into developing this document.
What Is An Outsourcing Transition Plan?
At its most basic, an outsourcing transition plan is a strategy that you use to ease your new outsourcing partner into the work at hand. The plan will cover everything from the onboarding of the new partner to the transfer of the work they need to do from your internal team. Its goal is to help you get them started without causing disruptions in your operations.
The Importance Of The Transition Phase
Since you are working with the provider for the first time, there are plenty of things to iron out before you two begin work. The transition plan serves as a guide to help you polish out these details. It also serves as the foundation of the entire working relationship, as you get to lay the rules governing it.
Dealing With Resistance To Change
Beyond settling your new outsourcing partner in, the transition plan also helps get your internal team on board as well. Here, one of their biggest concerns is the change that accompanies the entry of a new team. Your internal team may feel threatened if they believe that the outsourced team is getting their jobs.
The transition plan will help your startup better engage the internal team and get them to be more open about the entry of the outsourced team. A good transition plan can identify their specific areas of concern and resolve those. It can also help you bring both the external and internal teams closer and get them working more effectively.
Transitioning To A Long-Term Working Relationship
While the transition to outsourcing happens early, it has a significant impact on the overall tone of the collaboration. During this period, you can observe how the outsourcing work is going. You can then make some predictions and strategies to develop the various areas further.
A good transition plan will help you better take advantage of that opportunity. With it, you can conduct the move in a more organized manner. This way, you can observe it in a more controlled manner and strategize better.
The Stages of Outsourcing Transition
When creating your outsourcing transition plan, you need to know how the process should go. There are typically four stages that the transition phase follows. Each of these stages covers a different aspect of the work. Your goal is to make sure that these aspects fall into place correctly to complete the move.
Pre-Contract
While the transition period revolves around easing in the outsourcing firm you signed up with, your plan actually begins before it. Do some due diligence on the shortlist to get a strong start preparing for the move.
Your goal at this stage is to get a better grasp of each candidate provider’s capabilities and see how these will play into your business. For the candidates’ part, they need to know more about your business to create the right proposals for you. The transition plan needs to facilitate that exchange of information. For instance, you need to decide what information to provide candidates about your business and what to ask from them in return.
That process continues once you have chosen a provider but before you sign a contract with them. Here, you begin discussions with them on how to proceed with the transition. In some cases, you might need to redesign some of your processes to accommodate the provider’s entry. Discuss the communication plan that you will use during the period as well.
Transfer Of Assets And Knowledge
Once you and your chosen provider sign the contract, the next stage of your transition plan involves the transfer of the assets they need for the work. This is one of the essential aspects of the transition phase, as it will determine how fast the provider can start. However, it can also be very complex, especially if you are dealing with plenty of assets.
Thus, you should plan extensively how the transfer will happen. Some of the activities that you need to carry out.
- Creating an environment that facilitates the more effective transfer of assets and service delivery.
- Documenting the work processes your outsourced provider needs to take over from your internal team.
- Creating the workflows for these processes
- Managing the actual knowledge transfer process to the provider
When planning out all of these activities, you need to make sure that they are applicable for all of the asset transfer processes that you will do. In some cases, there might be some variations. But you still want to ensure continuity to ensure a smooth transfer.
People Management
As we have mentioned earlier, the entry of a new outsourcing provider will significantly affect your internal workforce. Thus, your transition plan should also deal with this concern. The first step here is informing the people who will be affected by the development.
Here, you would want to do that as early as possible. This gives them enough time to process the news and determine how to respond. A vital strategy here is assuring them that the change would be for the better. Additionally, you can emphasize what they gain from the transition, such as lighter workloads. Once they understand what’s in it for them, your internal team becomes more supportive of the move.
In some instances, you might also need to prepare your customers for the transition. After all, you outsource so you can deliver better services to them. Letting them know about this transition will help the incoming team have a strong start engaging them. Plan out how you will deliver the message and what you will focus on.
Get MORE From Outsourcing With The Right Transition Plan
Once you have your transition plan ready, you can begin the transition work. This is where a good choice of provider becomes vital, as they can help make that transition go faster. At Virtua Solutions, this is our priority with new clients. Sign up with us today and get a strong start in your outsourcing efforts with our help.