TPI, Implementation, BPO

The Top 10 Problems With Outsourcing Implementations (And How to Overcome Them)

The Top 10 Problems With Outsourcing Implementations (And How to Overcome Them)

By Shawn McCray, Partner, TPI

You can choose blue-chip service providers and sign innovative, iron-clad, risk-sharing contracts — but still not achieve successful results if you underestimate the importance of Change Management and governance in outsourcing.

In multiple interviews with outsourcing providers and buyers of outsourced services (clients), we learned that poor Change Management and governance are the most systemic — and far reaching — of all the myriad mistakes that can occur. Experience tells us that some managers and project leaders tend to excel at domain knowledge, vendor and portfolio management, rather than Change Management itself.

Why are Change Management and governance critical business issues? Outsourcing agreements can fail to achieve intended benefits, not because the goals were ill-conceived but because of poor planning and execution, even cultural intransigence. The benefits of outsourcing come through the successful introduction and sustainment of change — a continuous commitment rather than a one-time event.

However, making change happen successfully is one of the more difficult aspects of organizational leadership and corporate management. For this reason, we are highlighting the commonly encountered problems that impede successful outsourcing implementations and, in particular, undermine changes required to achieve expected results.

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