Employee perceptions of outsourcing of information technology operations: An empirical investigation

Little research exists that address employee perceptions of information technology (IT) outsourcing, and its effects on IT employees. This chapter examines a study that investigated perceptions of employees directly involved in IT outsourcing and correlated these perceptions with factors identified in earlier studies. The following human resource factors associated with outsourcing were evaluated: job security, benefits and compensation, morale, productivity, training and skills, and career opportunities. The study evaluated four hypotheses that contended transitioned employees benefited more from IT outsourcing. Results substantiated those of two previous studies of employee perception of IT outsourcing. However, there was no statistical evidence to support the contention that transitioned professionals benefit more from outsourcing than retained professionals. To assist management with addressing these issues, a Modified Management Outsourcing Adoption Model, based on an earlier study, is presented as a tool for use in management action plans to incorporate employee perspectives into the outsourcing process and potentially lead to more successful outsourcing ventures.