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A Strategic Guide for Local Government On: Outsourcing

PHASES OF IMPLEMENTATION

Throughout all phases, both public- and private-sectors leaders who participated in the recent outsourcing meeting found that building and maintaining a collaborative environment between the government and vendor was the largest factor for long-term success.

OPERATIONS

Given that organizations vary in size, functional departments, business processes, organiza- tional hierarchies, systems architecture, and applications and more, the following phases provide leaders with a roadmap to a successful outsourcing implementation.

Implementation consists of four key stages, Launch, Mobilization, Implementation/Transition, and Operations.

The Launch phase focuses on evaluating whether an organization should outsource. If the organization decides to move forward, this phase also includes building the right teams, creating communication and project manage- ment plans, analyzing the system environment, and developing and distributing an RFP.

The second phase, Mobilization, is when the teams develop the contract scope, service level agreements (SLAs), and the statement of work (SOW) to guide the project to achieve stated goals and results.

In the Implementation/Transition phase, organizations transition the operations to the outsourcer while focusing on knowledge transfer, managing the vendor relationship and managing the project to customer satisfaction.

Finally, the last phase, Operations, sets the stage for maintenance and support to ensure out- sourcing will be sustained in the future through disaster recovery and disentanglement. This phase also looks at how to evaluate the process to ensure the end user is satisfied with the results.

Throughout all phases, both public- and private- sector leaders who participated in the recent outsourcing meeting found that building and maintaining a collaborative environment between the government and vendor was the largest factor for long-term success.

IMPLEMENTATION/ TRANSITION

LAUNCH

MOBILIZATION

LAUNCH

In the Launch phase, leaders should conduct a feasibility study to ensure outsourcing is right for the organization. Organizations examine internal operations to see what functions should be turned over to an outside vendor. Usually the functions or processes to out- source are areas where the organization can cut or contain costs, gain increased skills or knowledge, supplement core competencies, find predictability or better reliability, improve service to citizens, or eliminate functions or resources that are hard to manage.

If the analysis shows that outsourcing provides benefits, the goal of this phase is to build func- tional teams, develop a communication and project management plan, analyze the system environment to prepare for outsourcing, and develop and distribute an RFP to find the right outsourcing vendors.

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