January 5, 2024 - The key to success: A clear T&T plan during contract negotiations
The integration of a clear Transition and Transformation Plan (T&T Plan) during contract negotiations is critical for the success of IT sourcing projects. Creating a detailed T&T plan in a timely manner offers numerous benefits, ensuring that both the customer and the service provider are well-prepared and the transition phase is managed effectively and efficiently.
Advantages of Early Creation of a T&T Plan
Estimation of Resource Needs
Creating a T&T plan during contract negotiations allows companies to accurately estimate their own resource needs in advance. This includes both personnel and technical resources necessary for a successful transition. A clear plan enables early identification and planning for potential bottlenecks.
Clear Definition of Customer Contributions
A detailed T&T plan clearly defines the customer's contributions. This prevents misunderstandings and ensures that both parties know exactly what support is expected from the customer. Clear contributions are essential to provide the necessary internal resources and ensure that the service provider can effectively fulfill their tasks.
Active Management of the Transition
A well-developed T&T plan allows the customer to actively manage the transition. This means the customer takes a proactive role and maintains control over the transition process. Active management ensures that all activities proceed according to plan and that challenges are addressed in a timely manner. It is crucial for the customer to actively manage the transition, as it cannot be expected that the provider will manage the customer's contributions in the customer's interest.
Avoidance of Imbalances with the Provider
Without a clear T&T plan, the customer risks falling into an imbalance with the service provider. This can occur when unclear requirements or insufficient resources lead to delays and additional costs that only become apparent during the T&T phase. A detailed plan helps to minimize this risk by setting clear expectations and responsibilities.
Improvement of Contract Negotiations
By creating the T&T plan during the negotiation phase, the resulting findings can still be incorporated into the negotiations. Integrating a T&T plan into contract negotiations improves the customer's negotiating position. A clear plan includes a resource plan and customer contributions, helping the customer to know their own requirements precisely. This enables timely planning and preparation of these contributions on the customer's side.
Conclusion
Creating a clear Transition and Transformation Plan during contract negotiations is crucial for the success of IT sourcing projects. Such a plan helps estimate resource needs, clearly define customer contributions, actively manage the transition, and avoid future imbalances with the provider. Additionally, it improves the customer's negotiating position and ensures that the transition and transformation are carried out effectively and efficiently.