Outsourced staff suffer

Two-thirds of employees involved in outsourcing deals feel they are not properly consulted by their companies, resulting in...

Two-thirds of employees involved in outsourcing deals feel they are not properly consulted by their companies, resulting in stress, uncertainty and reduced performance, according to new research.

Only 35% of those questioned said the outsourcing company effectively communicated the new changes and just 17% felt they were fully consulted about the changes taking place. Worryingly, 19% of staff claimed they first heard about their company's outsourcing plans "though the grapevine".

Respondents said their employers' lack of communication resulted in high levels of stress (67%) and uncertainty (77%), resulting in poor productivity and errors.

Benchmark Research interviewed 120 employees in UK IT services organisations on behalf of IT services firm Steria.

The report's authors claimed that employee communication and human resources policies are out of step with outsourcing trends and this could threaten the success of future outsourcing deals.

The research also highlighted a lack of awareness of legislation designed to protect outsourced employees, such as the Tupe (Terms of Undertaking and Protection of Employment) regulations.

Kim Lambert, director of managed services at Steria, called the failure to consult fully with staff affected by outsourcing contracts "a false economy".

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