Transition Management is one of the most important roles in any organization that performs outsourcing or off-shoring. Transition management is the process of migrating knowledge, systems, and operating capabilities between an outsourcing environment to an in-house staff or vice versa.
Typically transition management methodology consists of five phases:
A Transition Manager is responsible for migrating the function or the process from the donor location or organization to the outsourcing organization. Besides managing the day to day affairs of a migration, transition Management is also about change management. A Transition Manager is the face of Outsourcing to many people. To be successful, the manager needs to facilitate the changes that outsourcing brings about. They need to ensure that the migrations are done in an effective manner. Also need to demonstrate the transformational power of outsourcing. The primary rationale to outsource or off-shore any function is to benefit from the resultant cost reduction.
The role of transition Manager begins as soon as any company begins to consider outsourcing. Initially, the transition manager is generally involved in creating the financial case for the project, and enabling the decision to outsource. The return on investment or payback period differ from case to case. It is generally accepted that outsourcing results in cost reduction of 20-50%. Returns on any outsourcing initiative can be maximized by ensuring that it is done as part of an overall strategy. There is adequate investment in the project and is implemented well.
Because of the nature of the role, a transition manager needs to have a variety of skills and competencies.