New approach to transitioning outsourced staff

The sustainable effects of outsourcing depends on the merging of corporate cultures at the workface and innovative management of the transition of staff, says Fiona Kinnear, human resources director at Computer Sciences Corporation`s operations in South Africa.

"While there are many critical issues impacting the success of outsourcing, people are often the glue that holds it together. Too often, when a client organisation and its outsourcing vendor start negotiating, the partnership discussions occur only at very senior levels.

"Alignment at the top does not necessarily guarantee that the outsourcing relationship will work. It will be up to the people at different levels to make it work on a day-to-day basis."

Kinnear says companies need to understand the complexities of moving staff from one culture to another - particularly the emotional issues involved. The outsourcing vendor must be creative in breaking down old habits, managing expectations and welcoming the client`s staff into the new working environment.

Innovation in transitioning staff was necessary for CSC last year when, with Telkom, it signed South Africa`s largest network outsourcing deal with Old Mutual and Nedbank. The deal is worth US$275 million and will create and manage a single shared data and voice network infrastructure for Old Mutual and Nedbank.

Instead of the conventional outsourcing approach of transferring staff to a single vendor, the clients chose to outsource their IT activities to a number of `best of breed` companies, while retaining CSC as a single entry point, and to transition what was previously a single team to different specialist companies.

"Not only was this deal one of South Africa` s largest outsourcing deals but, from an HR perspective, it was possibly one of the most complex outsourcing deals ever signed," says Kinnear.

And, she says, it stands to reason that the more complex the deal, the more complex the transitioning of staff will be, and it is important that a single entity manages the transitioning of staff from the various companies and that communication is consistent throughout the process.

"It is important to use set and proven methodologies and to populate these to each of the separate companies. The methodologies, principles and values must be the same for all the parties; you cannot treat people differently."

Kinnear says this is easier said than done, especially when it comes to `soft issues`. "It is easier to standardise and ensure alignment of `hard` issues such as salaries and benefits than it is to ensure consistency with regard to `soft issues`, such as corporate cultures and perceptions."

CSC in South Africa used its experience gained from its existing previous Old Mutual IT infrastructure outsourcing deal signed in 1999 - at the time the biggest outsourcing deal in the country - to manage the HR issues of the network outsource.

"While the transitioning of staff went very well, we had a number of sensitive issues to deal with, particularly when deciding who would be best suited to which business environment."

Kinnear said the solution lay in conversations. "It is important to listen and to understand the issues people have. These issues are often based on perceptions and expectations, with the fear of the unknown possibly being the most significant of all."

She says that one of the mistakes companies often make when transitioning staff is to `over-sell` the benefits of the transition.

"You need to remember that, in effect, you are selling something the staff have very little choice in buying. It is very important to acknowledge this and understand the issues from their point of view."

It is equally important to be factual and objective about what the deal is and what it isn`t.

"Don`t oversell or over-promise. Be realistic about the changes staff can expect and about the company they will be working for. Don`t only talk about the positives of the organisation - give people a real sense of what is going to happen, why it is happening and what they can expect."

She says it is important to give transitioned staff as much information as possible and to be upfront about the choices they have and why they have them.

"Equally important is knowing the expectations of transitioned staff, and how they interpret the corporate culture they will be moving in to. This communication must be done at the earliest possible stages, using the most appropriate forums for discussions. You need to use as many forum of communication as possible; one can never over-communicate in a transition environment," says Kinnear.

Consistency of information is particularly important.

"If the messages are consistent, you gain staff trust. And when you build trust, you gain commitment. And without committed people a company is unable to deliver on its promises to customers."

Kinnear says that while CSC is vastly experienced when it comes to the transitioning of staff, the company continues to build on its experience with every outsourcing deal.

"Although we have a proven model, every situation and every company is different because people differ and so do their demands and expectations."