ABSTRACT

This chapter covers the human factors in outsourcing. This is a big area encompassing staffing, stakeholder and control issues. In the UK legislation creates issues around staff. The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) relates to the rights of staff when work is transferred between employers. TUPE may mean that members of staff have to be transferred to the new contractor and this may negate some of the benefits of specialist skills that you expect to get from an outsourcer. There is some argument that outsourcers can recruit and retain better quality staff. Mediocrity is not something that businesses strive for and in some areas can cause significant problems. In a similar vein to staff quality there is the ability to motivate staff. Surveys have shown that staff, provided they are paid at least market rate, do not rate money as a high motivator. Alongside the stakeholder buy-in goes the level of client engagement.