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Transition Management in BPO and outsourcing Projects

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Article By Vibhav Nuwal

Transition Management in BPO and outsourcing Projects

Transition Management is one of the most important roles in any organization involved in outsourcing or off-shoring. A Transition Manager is responsible for migrating the function or the process from the donor location or organization to the outsourcing organization. Because of the nature of the role, a Transition Manager needs to have a variety of skills and competencies - she needs to be a good communicator, as the role requires extensive interaction with the clients; needs to have strong Project Management skills, as most migrations are complex projects that require expert management skills; she needs to be comfortable in working in a cross-cultural environment, as most often, the donor teams are based overseas; needs to have a very good understanding of the existing processes and technologies as these play a critical role in the off-shorability of any function.

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 - by ensuring that the migrations are done in an effective manner, and by demonstrating 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 Management 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. While the cost reductions obtained, and 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.

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