IT organization

Large-scale outsourcing at an IT organization

Case study: This organization decided to outsource part of its management activities and even transfer development activities to the Far East. A significant challenge, as the outsourcing process takes a considerable amount of time and cannot be conducted entirely confidentially. As a result, there is a long period between the internal announcement and the actual implementation. Additionally, for each employee, it must be determined whether they will remain in the core organization, move with the outsourced work or become redundant because of the outsourcing to India.

A successful reorganization, therefore, should be executed like a military operation: well-prepared, meticulously planned, led by a small top team, and carried out with the right speed and decisiveness.

Change communication often aims to create support. However, in a reorganization, support is often too much to ask.It already is a significant challenge to ensure that employees understand and accept the reorganization, that unrest remains manageable and the impact on performance is limited. And that employees always feel well-informed and respected throughout the process.

We help our clients guide their organization through a reorganization without unnecessary damage, so that there is a good starting position to build upon afterward.

 

Approach

This operation consists of a large number of workstreams. Communication & change is not a separate workstream, but a function within the overarching Program Management Office. This set-up makes an integral change management approach possible.

First, the operation is prepared by a small team in strict confidentiality. The approach plan is based on a detailed impact analysis. Additionally, there is a contingency plan for scenarios where things do not go as planned. Once the operation is public, team meetings are held at all important communication moments. By speaking directly with employees, it becomes clear how messages are received, and perceptions can be managed more quickly and accurately.  strict guidelines ensure that managers everywhere handle employees’ questions and concerns in the same way.
The works council is closely involved from the beginning, and receives all necessary background information. As a result, the council can do its work well, and a constructive collaboration emerges.

The management is frequently present on the work floor and invests a lot of time in informal contact with employees. All leaders are trained to handle their teams’ uncertainty well. In a weekly conference call, they are briefed and report on the team’s atmosphere. The management monitors performance, the number of incidents, absenteeism, employee turnover, team atmosphere, etc., on a weekly basis via a dashboard. Additionally, it is agreed in advance at which levels additional measures will be taken.

During the selection and placement process of employees,, everyone is well and clearly informed about the choices they have, the available positions, and the procedures to follow. Transparency and ‘Fair process’ are absolute norms in all steps of the selection and placement process. As soon as it is known which party will take over the management activities, introductory visits are organized for people who will move with their work to the new employer. Where outsourcing was previously an ‘abstract doom,’ a concrete and much more positive image now emerges.

For people whose positions are deemed redundant, various job fairs are organized. The internal media highlight how enthusiastic other companies are to hire employees from this organization and how many ‘matches’ have already been made. Here, too, a positive dynamic eventually emerges.

Results

The entire process takes more than two years. Despite the uncertainty, employees experience the process as being fair, as a process in which they are treated with respect. If tension occasionally rises, it is immediately detected, and management responds appropriately. This way, the organization continues to function well, and the transition to the new situation proceeds smoothly.