Successful Transition Processes
“The magic of challenges faced by both the customer and the FSP are interesting. When we turn the page to see the check list of what all needs to be done, it turns out to be a process that calls for a concerted effort from both the teams.
The customer has to ensure that all the necessary information and well-articulated expectations are shared with the FSP. This would enhance the understanding of the FSP and help them to have a better planning. These could be divided in four categories –
Statutory: Modification to be done in the list of FSPs as mentioned for the Registration Certificate (RC) of the customer. The information required from the FSP has to be clear, elaborate and updated. Apart from this, the necessity of the Form V, documents required, responsibility matrix of who has to do what would be better if drawn in advance.
a. A sub-section of this is the daily attendance, records and registers, clarity in terms of whether daily or periodic monitoring is required by the customer for this.
b. The submission dates, authorities and documents need to be specified.
Commercial: What is the rate agreed upon dependant on, if at all? What would entail any deductions or which services or products would be charged extra? What are the taxes, margins etc.? All needs to be clear.
People: Any kind of specifications need to be pre-defined as well as the on-site documents, trainings and mode of payment has to be clear. The shift timings, if any, need to be understood.
Legal: Both the entities are getting into a legal agreement. The exit formalities, indemnities, liabilities and covenants need to be very clear from the beginning. This process, ideally takes about 30 days’ time for all involved to be completely and correctly satisfied.
“Here the challenges happen in many formats. They could be in the signing of the legal document – there are cases where they are just not signed and instances where the tenures have been very short lived. This causes heartburns, issues.
“There are cases where the definition of scope from the customer is so pithy that the FSP is told, for example, your scope of left to right and top to bottom. It would be tremendously frustrating for the FSP to try and deliver to the expectations of such a client.
The statutory requirement is supposed to be very clear and open for all to follow. However, there are cases of either misrepresentation or withholding of information which could lead to problems for both the sides.
“One of the arcane systems with customers is the methodology and execution of a broadly defined two-page note in the agreement which addresses `Penalty Clauses’ – yes, do not be surprised.
“It is not unheard of for a client to ask the FSP to start the services at a day’s notice. So much for the seamless expectation and to do the tango of meeting the challenges of the transition!
“On the part of the FSP, there are equally ludicrous examples. These could be taking a contract at a value that does not even meet the requirements of the minimum wages defined. They are also to blame for assuring the client ‘a miraculous transition’ and awe-inspiring difference. “There are FSPs who have ventured to mend their ways to an extent that it is barely within the legal framework being adhered to.
“However, honestly, the changes on both sides are welcome and in the right direction. The new generations are bringing in new exposures, expectations and a constant drive to improve. These are trending the industry to grow robustly and also to keep converting the shares of un-organised to organised. The future looks bright and beckoning for a global competition,” concludes Vinay.
(Inputs taken from article published Building Operating Management magazine www.facilitiesnet.com)
