Are you planning an outsourcing project?

Do not take change management lightly!
Outsourcing a process or function is seen by many larger companies as a means of increasing efficiency, addressing local skills shortages and achieving significant cost savings. However, outsourcing projects are associated with massive changes for both the companies and their employees. Sound change management is therefore crucial to the success of such a transition and ensures that internal employees remain motivated and committed. Both hard and soft factors need to be given sufficient consideration.

The following four levels of action are fundamentally relevant to the success of an outsourcing initiative:

Operative change management: The first dimension deals with the practical aspects of an outsourcing project. This includes the development of a detailed implementation plan, effective resource allocation and the establishment of clear procedures and benchmarks. Operational change management ensures that day-to-day functions are transitioned smoothly without disrupting ongoing operations.

Tactical change management: At a strategic level, tactical change management is concerned with aligning the outsourcing objectives with the long-term goals of the organization. This includes managing the dynamics within the organization and the outsourcing partner to foster a collaborative environment. This is critical to ensure that the change supports the overarching goals of both entities and leads to sustainable growth.

Internal communication: Effective communication is the backbone of any successful change management strategy. At AGILIS, we advocate robust, bi-directional communication channels that not only provide timely and accurate information to all stakeholders, but also allow for feedback and adjustments based on employee input. This open line of communication helps to mitigate resistance and create a climate of inclusion and mutual understanding.

Employee mobilization and cultural management: Mobilizing employees in outsourcing not only means turning potential resisters into advocates of change, but also actively shaping the corporate culture. By involving employees in the change process and taking their concerns and suggestions seriously, companies not only promote a positive attitude towards change, but also strengthen cultural coherence. Targeted cultural management that focuses on values such as openness, transparency and mutual respect supports the seamless integration of outsourcing processes. Recognizing and rewarding employees who support and drive change also increases commitment and leads to positive results.

The successful implementation of outsourcing strategies requires a comprehensive consideration of both the technical and human aspects. An experienced partner plays a crucial role in this by effectively representing the client’s interests to the outsourcing service provider while ensuring that change and culture management strategies are consistently implemented. This not only leads to a more efficient integration of outsourcing processes, but also promotes a culture of acceptance and commitment among employees. Such an approach ensures that the company’s long-term goals are achieved and that employees are successfully engaged during the transition process.

Are you facing an outsourcing project and need to manage the transition? Contact us, we're happy to share our experience and best practices from a large number of outsourcing projects to which we've contributed!
 
Christophe
09.04.2023
Christophe Berger
Christophe is founder and CEO of AGILIS. He has been working for more than 10 years for an international IT and Outsourcing provider and has accompagnied many clients in their outsourcing projects. He therefore knows very well the mechanics of outsourcing, but also the dynamics on the customer side.