From previous articles; we know not only how to get into an unhealthy dependence on IT suppliers and what problems this causes us; but also how to avoid such dependency. But what should you do if you are already in this situation and need to get out? You can find out in the last part of this three-part series.
1. Review your contract with the supplier
The contract is a fundamental document that sets the boundaries within which we will operate. Check the validity of the contract and the conditions under which you can terminate the cooperation. It is particularly important to check how the procedures for handing over the system; services and documentation are defined. Consider carefully whether it would be more advantageous to agree on a change to the contract first; so that the conditions are fair for both parties. The supplier will be prepared to make concessions in order to retain you as a customer.
Be aware that a certain period of time is needed for the handover between the old and new suppliers. Propose a procedure for how the handover will be organized; what steps need to be taken and within what time frame.
2. Clarify why you want to change suppliers
The main thing is that your business must continue to function after the change of supplier. Clearly describe why you want to change suppliers and what risks this change entails. Adding the benefits and costs to the list of items will make your decision clearer.
If the supplier is not fulfilling your requirements; find out why. Is it because you are unable to give clear instructions? Are you changing your requirements unsystematically? If you find that your organization is largely to blame for the problems; then changing suppliers will not solve the problem. You will only be transferring the problem from one supplier to another.
3. Create a detailed list of IT assets
The list must include hardware; network topology; software; and all applications that support your business. You need to be sure that you know exactly what you are transferring. Are there parts that are not under your control and you are unable to export your data; for example?
There is nothing worse than forgetting a component during the handover and then not having access rights to it; for example.
4. Verify your knowledge of all access data
As part of its risk management program; every company should store all access data to its systems and more in a safe; sealed envelope; for example. It is a good idea to check at least once a year that this information is functional and complete. It has happened more than once that after the departure of an administrator or supplier employee; no one could access a particular system.
5. Appoint a person responsible for the transition
To ensure a smooth transition; I recommend nominating a specific person to be responsible for the transition. Either this person or their subordinates in the team must be able to plan the transition and ensure that the transition plan is followed. This single point of contact is responsible for communication; problem solving and preventing misunderstandings; and no one should have the right to bypass them.
6. Back up your data
Physically verify that you have backups of all your data and; most importantly; that you are able to extract and use the data in case of problems. A backup where you do not know the data structure and cannot use it is; of course; useless.
7. Beware of prohibiting the employment of the supplier's specialists
Most suppliers have a strict ban on their employees being employed by the client in their contracts. While in the past it was common for customers to poach employees who were involved in the development or administration of their systems; today these practices are usually very well covered by contracts. Moreover; the cost savings often backfire by reducing substitutability and leading to increased operational risks.
8. Beware of possible production outages during the transition period
In February 2018; the KFC fast food restaurant chain had to close 900 restaurants in the United Kingdom because they had no chicken. For more than a week; it was not possible to deliver chicken. The outage was caused by a change of logistics partner to DHL in November 2017. How much did they save on logistics and how much did this outage cost them?
Even with the best planning; problems can occur; and it is necessary to take this possibility into account and prepare contingency plans for rollback (returning to the previous state).
Changing your IT supplier is not a simple matter; and you need to think carefully about when to do it. I hope this article has given you a basic idea of how to plan and implement such a change.
