ABSTRACT

As discussed in Chapter 2, the decision to outsource IT frequently does not consider the needs of the employee in the IT department of the organisation. However, the delivery of IT services is a people-based service function1 and the success of outsource engagements can for the most part be attributed to the commitment of those people staffing the outsourcing contract. Outsource vendors therefore should recognise the importance of ensuring a smooth transition of employees from the old company (referred to in the text as Oldco), to the new outsourcing vendor (referred to in the text as Newco). Research on the employee perspective in outsourcing is limited, and samples restricted to Western European (particularly UK) organisations. Cultural differences may influence the responses of staff. For example, under Hofstede’s dimensions there are differences in power-distance, individualism and long-term orientation between the UK and South Africa.2 We cannot therefore assume that staff in different countries will react in the same manner.