Successfully Navigating Transition of Services to a Global Capability Center or Offshore Provider
The Transition Life Cycle
The hard work of designing a future Global Capability Center (GBS) operating environment is done, and a lower cost, more efficient future way of working, utilizing offshore delivery and intelligent automation, has been agreed upon. The opportunity for higher quality, defined by faster turnaround times and fewer mistakes, can be realized — all at a considerably reduced cost. However, driving such success requires that the transition be planned thoroughly and executed in every detail.
Initially, companies are excited about the opportunity and have high expectations. They feel confident in the solution that has been developed and negotiated, and are typically confident in the ability of the offshore team, whether internal or from the supplier. The approach of the company is often “hands off,” and while this is initially comfortable, mistakes will inevitably occur. Questions start to be raised about the wisdom of the new operating model, but few understand the complexity and implication of the change. Furthermore, all of the impacted stakeholders are rarely identified, nor is a detailed communication plan prepared and implemented.
The decline in confidence is in parallel with efforts on the ground, typically in an offshore location, to get the operation up and running, staff recruited and trained, technology set up and new tools implemented to drive efficiency. Typically, at around 90 to 120 days into the transition the weight and complexity of the transition becomes fully apparent, and the governance, planning, core vision and value proposition are all questioned. The decline in confidence needs to be reversed, with strong, effective and dedicated leadership, both in the offshore location and at company headquarters.
When poorly executed, the transition can spiral downward, with a continued decline in confidence from users and management, and despite the best efforts of the offshore team the program can stall. In this event, the promising opportunity to drive efficiency and reduce cost can be held back or even lost, but with good planning, reporting and execution, things can be brought back on track.
A robust approach to transition with active management and strong reporting at each stage of the process is essential to managing risk and providing a firm foundation for efficiency. Read the full article to discover how meticulous planning and execution can drive efficiency and cost reduction in your GBS operating environment.
