T 2.88 Negative impact of an outsourcing project on the organisational climate

Depending on the type and scope, outsourcing projects do not only have an impact on the business processes, but also on the personnel within a company or government agency. In this context, however, negative impacts are also possible in addition to the positive impacts expected by the customer.

Examples include:

• In the outsourcing area, there might be a reduction in personnel and corresponding transfers or dismissals of employees.
• Due to the outsourcing of business transactions, accustomed work processes are changed.
• Before, during or after the introduction of an outsourcing project, the work load might be high.
• Due to the collaboration with employees of an outsourcing service provider or external consultants, it might be necessary that individual employees have to cede authorities and responsibilities. Likewise, it might also be the case that employees have to assume new responsibilities and thus feel that their work is too demanding.
• Due to restructuring in connection with an outsourcing project, it is also possible that employees have to change their employer and/or job (e.g. transfer to a subsidiary or take-over by the outsourcing service provider). In this respect, the employee might also be forced to accept worse conditions or at least perceive it like this.

Because of these or similar changes, there might be a sustainable negative impact on the working atmosphere. Possible potential threats include among other things:

• Employees or former employees might commit acts of revenge.

• The employees are poorly motivated and accidentally or deliberately neglect their duties, security safeguards in particular.

• Employees with important expertise (such as Heads of IT and administrators) might quit during the introduction phase. As a result of this, the outsourcing project might not be implemented as needed or might not be implemented at all, which in turn might also threaten the existence of the organisation. The outsourcing service provider often depends on the key experts transferring to their company in an orderly manner.