- What is transition management and why is it important. - What are the common challenges to a successful outsourcing transition and how to mitigate those risks. - What are the key components of a successful outsourcing transition and how to plan and execute each stage.

1. How to Avoid Common Outsourcing
Transition Challenges
Pankaj Sharma, Partner & SVP, Neo Group
Shom Biswas, Advisory Manager, Neo Group
Adolfo Masini, former SVP, MD, Digital Services, Comverse
August 27, 2015
NEO INSIGHTS SERIES

2. 2
© 2015 Neo Group Inc. Proprietary
• Globalization Strategy
• Sourcing
• Location Strategy
• Health Checks
• Renegotiations
• Governance
" Since 1999, we have been helping clients
accelerate benefits and minimize risks
associated with global services and
sourcing.
" We have a singular focus on the global
services supply chain.
" We achieve outcomes through deep
intellectual property, real-time analytics,
proven methodologies, experienced
advisors and co-creation with our clients.
NEO GROUP’S SINGULAR FOCUS SINCE 1999
We deliver results through three distinct and linked solutions and services:
ADVISORY SERVICES
GOVERNANCE SOLUTIONS
• Design
• Run and Support
• Ongoing Resource, Contract
and Performance
Management Services
SUPPLY MONITORING &
ANALYTICS
• Country
• City
• Supplier
• Real-Time Event Alerts
• Subscription-Based
Monitoring

3. 3
© 2015 Neo Group Inc. Proprietary
Pankaj Sharma, Neo Group Partner & SVP, brings over 25
years of experience in management consulting, corporate
governance, project management, BPO/IT services and
consulted with large global companies, including Time Warner,
Home Deport, Chevron, EA, Visa, Time Inc., EMC, Kronos,
Cendant and many others.
Adolfo Masini, former Senior Vice President, Managing
Director for Digital Services at Comverse, has extensive
experience in the areas of general management, business
transformation and renewal, product management and
development, global sales and business development.
SPEAKERS FOR THE DAY
Shom Biswas, Neo Group Advisory Manager, has extensive
Globalization Consulting experience, having worked with and
consulted leading global companies, including Comverse, Time
Inc, True Value, Northern Trust, and many others, in the areas
of Sourcing Strategy, Transition Strategy and Post-Transition
Governance.

4. 4
© 2015 Neo Group Inc. Proprietary
AGENDA
Ø Transition Planning
Ø Why Transitions Fail
Ø Transition Risks
Ø Risk Mitigation - Transition Roadmap
Ø Transition Governance
Ø Measuring Success
Ø Recap: Hurdles & Elements of Effective Transition
Ø Recommendations

5. © 2015 Neo Group Inc. Proprietary
TRANSITION PLANNING - VALUE OF TRANSITION
Assessment
Transition
Sourcing
Functional / Role
Assessment
Sourcing ( if
using 3rd party
vendors)
Negotiations
and Contracts
Migration to
Global Team
Business Driver
Awareness
4
5 6
7 8
2 3
Globalization
Strategy
Knowledge
Transfer
Steady State
Steady State
Governance
9
1
Architecture
Management
Globalization Life Cycle
ValueRealization
Transition acts as the
§ Accelerator for globalization value capture
§ Inflection point for return on globalization investment
Governance protects the value of investment by
§ Control and conformance to timelines, processes and outcomes
§ Realizing business objectives
5

6. © 2015 Neo Group Inc. Proprietary
QUICK POLL #1-3: TRANSITION PLANNING6
1. Is your organization planning a global
transition?
a. Yes, within the next 6 months
b. Yes, but no definite timelines
c. Not at this moment
2. If yes, the transition is:
a. vendor(s)
b. To own GIC
3. If yes, the nature of the transition is:
a. A new transition
b. Adding / increasing the
current globalized scope

7. © 2015 Neo Group Inc. Proprietary
As you consider the potential need for a transition to take place
these are some of the key questions you need to ask:
– What:
What to globalize – identify the tasks that can be globalized and how
they may be defined as individual defined processes.
– Where:
Where to globalize – identify the location and operating model. Should
you work with a supplier or open your own center?
– When:
What are the timelines to globalize and transition?
– How:
How to go about it – Transition Roadmap and Plan.
QUESTIONS TO ASK BEFORE PLANNING7

8. © 2015 Neo Group Inc. Proprietary
WHY DO OFFSHORE TRANSITIONS FAIL?8
Poor transition
governance and
project oversight
Unreasonable
expectation of
timelines for
completion of
transition
Poor risk
management during
the transition
Weak Knowledge
Transfer – and no
checks and balances
to check success at
every milestone
Lack of Leadership
support and
intervention
Relationship/Cultural
gaps (stemming from
poor choice of
vendors/poor
recruitment of
leadership in captive
location)

9. © 2015 Neo Group Inc. Proprietary
TRANSITION RISKS9
Resource Risks
Operational Risks
Financial Risks
Cultural Risks
Control Risks
Managing Efforts/
Issue Risks
• Efficient hiring
• Identification of critical resources for
delivery team
• Inadequate data privacy and security
• Production outages
• Country-specific work councils/unions
• Trade union challenges
• Increased travel to location
• Delay in savings
• Higher client side cost structure
• Understanding each other’s norms and
work ethic
• Steeper learning curve
• Client’s best interest not being followed
• Inability to manage Vendor/Captive Center
and changes
• Inability to detect when program is off track
• Monitoring performance from a
distance and without local knowledge
• Organizational resistance
• Clear vision and communications
• Vendor/Captive Center in complete
control of service delivery
• Lack of client understanding of Vendor/
Captive Center practices
• Ineffective knowledge transfer
• Non-compliance on regulatory matters
• Inadequate disaster recovery and BCP
• Feasibility
• Steeper learning curve
• Lack of daily oversight
• HR transition and morale
• Lack of clear communications
• Slower response times
• Increased re-work
• Longer transition than expected
• Increased usage of client personnel
• Unsteady “steady state”
• Non-Identification of key resources
• Critical & Core
• Non-Critical
• Non-retention of core and critical resources

10. © 2015 Neo Group Inc. Proprietary
QUICK POLL #2 TRANSITION RISKS10
What are the most relevant concerns and/
or risks you foresee or perceive for the
transition? (Select all that apply)
a) Internal Knowledge will be lost, offshore employees
will not be able to cope
b) Cultural challenges leading to communication gaps
c) Job losses will lead to loss of credibility with
stakeholders, community
d) Internal buy-in within organization will be difficult to
get
e) It will take too long/face delays, cost benefits will be
below par

11. © 2015 Neo Group Inc. Proprietary
TRANSITION ROADMAP: IMPLEMENTATION11
Setup Transition
Governance
Plan Transition
People
Process
Review Scope
Transition
Baseline
Technology
Knowledge Transfer
Shadow Support
Reverse Shadow Support
Steady State (Stabilization)
Transition Governance
Change Management
Time
EXECUTEMOBILIZEPLAN

12. © 2015 Neo Group Inc. Proprietary
KEY STEPS IN CREATING TRANSITION ROADMAP12

13. © 2015 Neo Group Inc. Proprietary
STRATEGIC TRANSITION ROADMAP13
§ Pre- Transition: Clarity on Transition
- Scope – defined clearly and in detail
- Resources – retention strategies
- Processes – changes required
- Technology requirements
§ Expectation Setting
– Stakeholders’ map
– Department/Process
interdependencies
– Clients
– Vendors
§ Effective Communication
- Communication plan – internal & external
- Active Championing of the Program by Leadership
H L
Functional
Suitability
for
Globalization
L
H
Process/TechnicalReadinessfor
Globalization
Stage 1 includes “Quick Wins” that will enable “Proof of Concept" and
execution capability
Wave Attributes
Wave 2
§ Significant customer
interactions
§ Significant industry
knowledge
§ Highly complex
activities
Stage 2
§ Complex activities
§ Fractionalized
activities
§ Workflow
dependencies
Stage 1
§ “Quick Wins”
§ Limited
dependencies
§ Ease of
implementation
The guiding principle of wave sequencing is to minimize risk and increase the
probability of success
The guiding principle of wave sequencing is to minimize
risk and increase the probability of success
Stage 1 includes “Quick Wins” that will enable “Proof of
Concept” and execution capability.

14. © 2015 Neo Group Inc. Proprietary
Key Elements:
§ Monitoring & Reporting
– PMO
– Roles and responsibilities (RACI)
– Meetings: subject, attendees, cadence
– Reporting: frequency, responsibility, metrics
§ Transition Risk Management
– Issue and escalation management
– Risks identification and mitigation strategies
– Change control
§ Resources
– Retention and rebadging strategies
– Job descriptions and hiring plans
– Recruitment: no show management
TACTICAL TRANSITION ROADMAP (1/2)14

15. © 2015 Neo Group Inc. Proprietary
§ Create Baseline
– Process maps – “as-is” process before transition
– Performance benchmarks
– Current productivity and utilization
– Technology requirements
– Statutory & regulatory requirements
§ Transition Training and Knowledge Transfer
– Training process and success parameters
– Training tools – documents, process maps, modality
– Transition Training Feedback Mechanism
§ Time Zone Management
- Time zone requirements
- Expectations realignment
- Operating model – new vs. current
§ Holiday Work Allocation Mechanism
TACTICAL TRANSITION ROADMAP (2/2)15

16. © 2015 Neo Group Inc. Proprietary
BENEFITS - STRUCTURED TRANSITION FRAMEWORK16
Value
Addi*ons
Framework
Benefits
Strategic
alignment
Delivery
effec1veness
Define
ownership
Program
approach
Change
management
Transi1on
planning
Next
phase
ready
Risk
management
Best
prac1ces

17. © 2015 Neo Group Inc. Proprietary
TRANSITION GOVERNANCE ROADMAP17
Transition
Governance
Strategic
Operational
Tactical
§ Coordination, communication & control between
process owners
§ Provide for knowledge transfer and knowledge
management
§ Opportunity Identification & enable demand
aggregation
§ Cross-functional, cross-geography, cross-vendor
alignment
§ Manage globalization service levels
§ Manage vendor relationships, performance and
resources
§ Manage scope and integration, contract
management, Risks & Issues
§ Reporting, Meetings, Escalation Management
§ Align business strategy & global services transition
initiatives, guide execution of enterprise wide
globalization initiatives
§ Ensure adequate risk mitigation and controls
§ Program sponsorship and championing
It’s never too early to
begin planning the
governance structure!

18. © 2015 Neo Group Inc. Proprietary
OPERATIONAL TRANSITION GOVERNANCE18
§ Service levels – monitoring, reporting
§ Schedule management
§ Issues in quality
§ Offshore workload management
§ Process flow for onsite/offshore delivery
Performance Management
§ Invoice review
§ Budget to actuals
§ Expense allocation
§ Invoicing procedure
§ Change management to base model
Financial Management
Contract Management
§ Key personnel
§ Staffing, attrition
§ Background checks,
§ Insurance
§ DR/BCP plans, readiness
§ Reformulate service levels for
relevancy
Resource Management
§ Retention
§ Buffer
§ Training
§ Vacation, holidays
§ Onboarding
§ Resource transitions
§ Conserve knowledge
transfer
§ Skills update
Relationship Management
§ One team
§ Track issues to closure
§ Bridge culture gaps

19. © 2015 Neo Group Inc. Proprietary
QUICK POLL #3 CRITICAL SUCCESS FACTORS19
What factors do you feel are most
critical to success?
(select all that apply)
a) Detailed Plan/Roadmap
b) Change management
c) Experienced project and transition management
team in both buyer and supplier organizations
d) Strong partnership between buyer and supplier
e) Detailed contract terms/conditions, SLA’s, KPI’s
etc.
f) Other – Specify using the question/chat feature

20. © 2015 Neo Group Inc. Proprietary
MEASUREMENT OF TRANSITION SUCCESS (1/2)20

21. © 2015 Neo Group Inc. Proprietary
MEASUREMENT OF TRANSITION SUCCESS (2/2)21

22. © 2015 Neo Group Inc. Proprietary
QUICK POLL #4 POST-TRANSITION ISSUES22
After transition of a function to a global
location, what is the biggest challenge
you/your organization has encountered?
(select all that apply)
a) Organization has not offshored to global locations yet
b) Availability of right talent - problems in finding and/or
training the right offshore resources
c) Expectation-setting with external and internal clients
d) Relationship with service providers (or) our global
offshore center team
e) Service Delivery from offshore location was poor.
Previous service levels were not met.
f) Other – Specify using the question/chat feature

23. © 2015 Neo Group Inc. Proprietary
RECAP: HURDLES TO TRANSITION23

24. © 2015 Neo Group Inc. Proprietary
RECAP: ELEMENTS OF EFFECTIVE TRANSITION24
§ Effective Transition Governance Model
§ Detailed Transition Program Plan
§ Agreed upon Tactical Transition Plan
§ Defined Transition Processes (including issues, risk
management, escalation procedure)
§ Ready Transition Check Lists, Guidelines, Supporting
documents and Templates
§ Comprehensive Transition Score Cards/Dashboards/Status
Reports
§ Structured Change Control Procedures
§ Pre-defined Transition Quality Audit Process/Checklist
§ Efficient Hiring
§ Successful Knowledge Transfer

25. © 2015 Neo Group Inc. Proprietary
RECOMMENDATIONS25
" Start early - Planning for transition is never too early
" Define scope clearly – “what to retain”, “what to globalize” – arrived through
a collaborative and trusted process & methodology
" Plan transition keeping in mind the end-state
" Conduct transition workshops – enabling common understanding
" Include all stakeholders in transition planning - management, operations,
supporting functions, clients, vendors)
" Invest in transition PMO/Governance
" Set-up a structured governance to manage transition – with well-defined
RACI, processes, reporting
" Embrace a continuous improvement mindset – strategy, people,
operations, technology, compliance
" Promote and practice the “one-team” concept
" Communicate – importance of the globalization program

26. © 2015 Neo Group Inc. Proprietary
THANK YOU!26
USA
340 S Lemon Ave., 3252
Walnut, CA 91789, USA
+1.415.839.8050
info@neogroup.com
AMSTERDAM, NETHERLANDS
BANGALORE, INDIA
BOGOTA, COLOMBIA
GUADALAJARA, MEXICO
LONDON, UK
NEW YORK, USA
SAO PAULO, BRAZIL
SILICON VALLEY, USA
SYDNEY, AUSTRALIA
PANKAJ SHARMA
Senior Vice President/Partner
pankaj@neogroup.com
SHOM BISWAS
Manager - Advisory
shom@neogroup.com
www.NeoGroup.com
www.SupplyWisdom.com