Chapter

Outsourcing Employee Impact

The Outsourcing Employee Impact category within the CIO Reference Library is designed to provide CIOs and other IT executives with a comprehensive understanding of the impact that outsourcing can have on an organization’s employees. Outsourcing is the practice of contracting with a third-party vendor to perform a business function or service that is traditionally handled in-house, and can include IT functions such as software development, helpdesk support, and network management.

Outsourcing Employee Impact refers to the effect that outsourcing can have on an organization’s employees, including those who are directly affected by the outsourcing decision and those who remain with the organization after the outsourcing has occurred. This impact can include factors such as job loss, morale, productivity, and retention.

The Outsourcing Employee Impact category includes a range of resources, including articles, whitepapers, and case studies, that offer insights into how outsourcing can affect employees and how organizations can manage this impact. The category covers topics such as:

  1. Communication and engagement: Best practices for communicating with employees about outsourcing decisions, engaging with them throughout the process, and addressing their concerns and feedback.
  2. Retraining and redeployment: Strategies for retraining and redeploying employees whose jobs may be affected by outsourcing, and identifying new roles and opportunities within the organization.
  3. Leadership and culture: Guidance on how to maintain a positive organizational culture and strong leadership during the outsourcing process, and how to foster a sense of community and collaboration among employees.
  4. Change management: Best practices for managing the organizational change associated with outsourcing, including planning, communication, and measurement.

By leveraging the resources in the Outsourcing Employee Impact category, CIOs and IT executives can gain a deeper understanding of the impact that outsourcing can have on their employees, and learn how to effectively manage this impact to minimize negative effects and maximize positive outcomes. They can also gain insights into best practices for communicating with employees, managing change, and maintaining a positive organizational culture.

Impact of IT Outsourcing on IT Workers

This study focused on three common approaches to IT reorganization and resizing, as a result of outsourcing, and their impact on the retained IT workers. The authors use the concept of a "psychological contract" to highlight the issues that arise, and to provide guidelines to CIOs so they can manage them better.

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