Switching IT outsourcing suppliers: Enhancing transition readiness

• Main Authors: SIA, Siew Kien, LIM, Wee Kiat, PERIASAMY, Kanapaty Pelly
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2010
• Subjects: Management Sciences and Quantitative Methods; Technology and Innovation
• Online Access: https://ink.library.smu.edu.sg/cmp_research/1; https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1000&context=cmp_research
• Institution: Singapore Management University

As IT outsourcing continues to gather momentum and mature, the decision to change suppliers at the end of a contract, or even earlier, has become an inevitable reality for many. This article sheds light on the management challenges associated with transitioning from one outsourcing supplier to another. Based on the “painful” experience of a large public-sector organization that chose not to renew its contract with a supplier that had operated its online portal and call center for five years, we provide insights into what makes a client organization “transition-ready.” We then describe the actions an organization can take before, during, and at the end of an outsourcing arrangement to prepare for vendor switching. These actions will help client organizations to reap more of the benefits from leveraging the outsourcing market in the long run.