Tips for Handling the Employee Side of Outsourcing Engagements


Some interesting survey results out of LogicaCMG. (Keep in mind that the company is a provider of outsourcing services!) According to a poll of 200 employees from large organizations in Europe whose positions were outsourced, 91% said their initial feels of trepidation turned out to be unfounded. Around 70% of those polled said they felt more "satisfied" in their new job as compared to before.

Here are two useful tidbits from "European Poll Shows That Outsourcing can Enhance Employee's Careers":

"Works councils and representative bodies played a crucial role in a successful transition process, the most common role being a key liaison point between the employees and the new company (82 per cent). In Germany and France, works councils often played the role of counsellor and negotiator and in the Netherlands the council most often acted as the key link with the new company."


"The poll showed that whilst the structure and content of the remuneration and employee benefits package are important, feelings of being part of the new team and involvement in the new company have the most positive impact on the overall perception of the outsourcing project."

Here are the tips offered by LogicaCMG:

  • Staff should be engaged at an early stage of the process through a clear communication program that defines the key drivers and objectives of the change.
  • Staff should be made aware of the benefits of outsourcing from the point of view of enhancing their careers and allowing them to develop specialization, as well as the overall benefits to their company.
  • Regular engagement between staff and managers and works councils is essential to allay fears, incorporate staff views, and generate the cultural fit required between the employees and the new company. A team-based approach, with an allocated group leader is particularly effective.
  • Allowing employees a feedback mechanism, either direct or through the works council is essential. Those employees who had a negative experience moving to a new role did not have the right level of access to the works council and feared communicating with the management team.

It'll be interesting to see if our own survey on the topic of the impact of outsourcing has similar findings. Time will tell.


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