Change is difficult. Transformational change, such as the change associated with Business Process Outsourcing, is exponentially more intricate. In fact, the complexity of managing that change is a major reason that enterprises decide not to outsource business functions. According to a 2011 survey by HfS Research and the London School of Economics Outsourcing Unit, 78 percent of enterprises cited the disruption to business as an important factor when making the decision not to outsource.
The pitfalls of a poorly planned and executed transition are many, and the operational, financial, and relationship implications are significant. Standing in the way of solid execution of an outsourcing transition are a number of common challenges, including limited process documentation, the lack of transition metrics, insufficient monitoring of vendor resources, and failure to plan for unexpected events. Understanding how to identify and address these challenges increases the likelihood of outsourcing success.