Vendor to Vendor Transition
While globalization contracts were in vogue during the last five years, many companies find inconsistencies between contracts, service providers, and strategic principles. When internal risks are assessed, many corporations find the need to reevaluate the list of service providers, consolidate contracts, or even phase out providers with higher risk profiles.
Collabera Consulting uses a six-step process to assist clients in rapid migration from a current provider to the new provider.
- Letter of Intent: A commitment between the new provider and the client is required for the transition to succeed.
- Assess Scope of Work: The existing scope of work needs to be reassessed, keeping in mind the expectations of both, the organization as well as the new provider.
- Inventory Intellectual Property: To ensure smooth transition to a new provider, the assets belonging to the client and the existing provider must be detailed. A gap analysis can then be conducted to determine what gaps in intellectual property need to either be provided by the new vendor or negotiated as part of contract termination.
- Transfer of Employees: To effect a rapid transition, a block transfer of employees is recommended. Clients can leverage this opportunity to isolate poor performers, while reaching out to key performers with special incentives for remaining on the project.
- Finalize Legalities: A Master Service Agreement (MSA) covering various areas such as project timelines, measurement of service levels, and processes for governance and change management.
- Steady State Operations: The client and new provider can govern and manage the outsourcing relationship at three levels:
- The technical level, which meets daily or weekly, to work through projects or specific operational concerns.
- The company level, between an account manager and a relationship manager. These parties meet monthly to review any alignment obstacles.
- The executives between the companies, should meet quarterly to discuss irresolvable issues and forward-looking concerns, to ensure long-term alignment.
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