Executive summary This white paper explores the key elements of a successful outsourcing transition process. Our research suggests that excellence in the management of a transition – where a supplier takes over and transforms agreed elements of a customer’s business – lays the foundation for a successful ongoing partnership between the two. In the maturing outsourcing market, companies are increasingly looking for a track record in excellence in transition management as a key criteria when awarding contracts. This is in part because many companies now have experience of outsourcing facilities management or other aspect of their business, and have experienced the importance of a successful transition. Transition management is a priority also because a growing number of companies are seeing outsourcing as a way to unlock value by either simplifying or transforming their supply chains – changes that offer value beyond cost savings but that come with increased risks to business continuity. Increasingly, the journey – how smooth the transition is – is as important a contract criteria as the operational aspects. A successful transition lays the foundation for a strong ongoing partnership. Floor host Everlyne Kraus As the goals of outsourcing contracts become more complex (e.g. supply chain simplification), so the relationship between customer and supplier becomes more important. Suppliers are expected to deliver transformation and change within the customer’s business, while integrating themselves into that business. It is for these reasons that we emphasise the importance of thinking in terms of partnership between customer and supplier. Successful transition management lays the foundation for a strong ongoing partnership. In this white paper we look at the key elements of effective transition management: a structured transition programme delivered by a high-quality team; detailed scoping and stakeholder analysis; targeted change management and communication; transparency in governance and reporting; risk identification, planning and mitigation; and the use of high-quality induction and training to ensure the transfer of staff results in high motivation and good service. Proprietary information ISS World Services A/S - Copyright © 2018 3
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