Johannesburg, 28 Mar 2007
As anyone who has faced the prospect of having his or her job absorbed by an outside company will know, the word outsourcing can unsettle even the most carefree of employees.
As such, an outsourcing deal is bound to be the subject of much office speculation.
Sydney Ramutla, regional chief executive of Business Connexion Johannesburg, says plans to outsource an ICT department invariably reach the grapevine. "Managers who imagine that they can keep the news secret from employees are operating under an illusion. Golden rule number one is to be open in order to dissipate fear and uncertainty," he says.
Fear and uncertainty are formidable foes, and thus a well-prepared and sensitive HR department is essential to a successful outsourcing deal.
According to Ramutla, having established practices and processes in place ensures companies making the transition from in-house to outsourced ICT will see staff members seamlessly incorporated into the managed services provider. While most employees remain with the business they were imported with, top-performers can often expect to become shared resources and be given a refreshing new set of opportunities.
To achieve this vision of outsourcing harmony, however, the procedure should be fine-tuned over time. Dr Johann Burden, group executive: human resources at Business Connexion, says the company has, over the years, streamlined its people take-on processes when engaging with new clients. "As a result, we are in a position not only to provide these new employees with opportunities within the original outsourcing account, but also in the broader environment in which the company operates. In many instances, the introduction of the outsourcing model can actually contribute to career growth for these employees," he says.
Burden says Business Connexion ensures all employees are well-informed of the roles they can look forward to even before the outsourcing deal is signed. "The process commences with an in-depth HR due diligence. This covers important aspects of HR management, including the analysis and assignment of fringe benefits, skills analyses, and job and salary matching," he says. Upon completion of this process, a transformation strategy for staff is formulated, drawing on the information and insights gathered.
Managing change in this environment is another critical requirement for success, and on acceptance of an offer, a change management process should be implemented to soften the landing of employees. This should include an induction process covering the outsourcer's policies, procedures and business strategies. Once the deal is signed, the onus is on the service provider to do whatever is necessary to retain employees. The HR division's role is also crucial in facilitating successful engagement with new clients. Managers should be encouraged to get involved as early as possible to guarantee security and peace of mind for potential employees. Well defined performance management practices must be put in place to ensure ongoing development interventions for each individual - both within the current account and elsewhere within the service provider's business.
An ICT outsourcing deal creates a shake-up for all involved, and managers overseeing such a deal would do well to remember a twist on another nineties catchphrase: 'It's the people, stupid.' Secure and informed staff members are essential to successful delivery. As Ramutla points out, even the most exceptional technology is ineffectual when not coupled with an empowered workforce: "While we provide technology services, we are cognisant that it is the people behind these services that result in excellence in delivery. As such, effective management of human resources is key to our mission."
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