When a Manhattan-based large financial house offshored work, it had a tough time convincing its line managers that it was the best option for the company. The interest of line managers directly clashed with the management, as line managers are typically less interested in cost savings than in simply getting the work done. The management came up with an innovative idea of setting aside a budget to be used as an incentive for line managers who use offshore resources. The fiscal incentive was a great idea as the level of resistance dwindled and the retained team began to work effectively with the offshore resources. Yet, such instances are rare in the outsourcing world. Companies tend to focus on employees leaving the company, whether it is those that will join the service provider or those that will be made redundant, giving less attention to the retained staff.
Ignoring the retained team can have significant impact on the outcome of the outsourced program. Consultants have found that in most cases (other than where there is an outright performance issue) customers who are unhappy with outsourcing have gaps in their internal processes and communication rather than any serious lapse on the part of the service provider.
Getting the cooperation from the retained team is something that managers face on the day after the outsourcing. It is a bit like being so busy focusing on your career that you forget to look after your own children. Although this may not entirely halt the program, it does cause plenty of bumps along the way. So how does one get it right?
Companies tend to focuson employees leaving the company — those that willjoin the service provideror those that will be made redundant — even as the retained staff getsde-motivated. Yet, keepingthe spirits high of theretained team is critical to the success of the outsourcing program
Empowerment is the Key Motivator
Ultimately the success of the program depends on the extent of buy-in by the retained team. An empowered team feels a part of a strategic vision instead of merely executing the decisions of the Board, and hence feel motivated.
Making the retained team devise, plan and oversee the company’s IT strategy can be a great motivator. Retail giant Sanisbury used this as a strategy to motivate its IT employees when it outsourced to Accenture.
Since the profile of the retained team changes considerably after outsourcing, where historical skill sets become less important, the retained team can be motivated to perform by positioning them as change agents.
Keeping the retained team motivated means creating the right conditions and providing a career path for them. “Remember, the job role of the retained team has changed considerably in the aftermath of outsourcing where historical skill sets of employees have little relevance. The retained team must be trained to handle new job roles like managing the vendor and developing a governance model,” says Phil Morrison, CEO, Morgan Chambers, and European sourcing advisory firm.
The new scenario requires employees to be good communicators, with skills to analyze the business requirement and develop solutions with the outsourcing provider. This means there is often a need for impromptu decisions without going through the hassle of getting clearance from the Board at all times.
