Alsbridge Recommends Early and Direct Communications to Employees for Outsourcing Success

Research recently completed by outsourcing consultants Alsbridge, Inc. shows that companies who confront employee concerns and questions early and directly will gain more immediate and greater return on their decisions to outsource functions or organizations.

To meet the business objectives of an outsourcing project, the operating processes and organization designs must change for the good of the emerging, more efficient business model.  The decision to co-source or outsource is complex and always requires an assessment of current operations, a review of the candidate processes and a meaningful savings plan. Those savings can come from process elimination, increased efficiency and expected reduction in labor. One of the fastest ways to reduce operating costs is to reduce the number of full-time employees because in the quarter following their departure and severance, the financial picture improves. Alsbridge counsels clients to resist the temptation to take a reduction action before assessing operations and making informed decisions about which operations can be safely, securely and effectively outsourced.

“Act too quickly and without the proper business support, your operation can be disrupted, employees may leave of their own accord with no time for knowledge transfer, and sponsoring management may begin to wonder why those savings have not appeared as committed,” notes Ben Trowbridge, CEO of Alsbridge.

Trowbridge recommends clear and direct communication, saying, “So, you’ve made the decision to outsource or co-source, you have held an initial `town hall’ meeting to announce the decision to your employees, and now it is time to engage those same employees to help prepare for service transition. Often their first question is `Why did you outsource my job? That other group has not achieved its goals and we have – why not outsource them?’ or `Why would I help you take the action that will eliminate my own job?’ The answer has to be clear and so easily explained that your grandmother would understand.  Effective transition requires a good communications plan, belief in and practice with the explanation, and vetting with stakeholders who will become your employees’ second line of appeal. The project sponsors and all senior management directly involved must be able to articulate the decision process.”

The communications plan must also include the message to key personnel whose knowledge of the current operation and thus cooperation during planning and transition is integral to success. The message states the company’s interest in the well-being of the employees and offers relevant incentive to stay with the team through transition. Alsbridge recommends recognition of employee contributions to date that led to their selection for staying on through transition, a good reference to their next employer, and a retention bonus if they stay through a specified date. Those with serious career aspirations will understand that the decision to outsource is business, not personal, and will take advantage of the incentive offer to launch the next chapter in their lives.

Alsbridge helps companies navigate their outsourcing, co-sourcing, and insourcing initiatives with unbiased advisory services.  Companies embarking on outsourcing projects should contact Alsbridge at (214) 696-6410 or email to inquiry@alsbridge.com for initial consultation.  Alsbridge also offers informative and educational materials on outsourcing, shared services, and benchmarking through an ongoing webinar and white paper series.  Visit the Alsbridge Research Center for the most up-to-date articles and papers on these topics at www.alsbridge.com/research.  

About Alsbridge, Inc.

Alsbridge, Inc. is an award-winning global advisory firm, providing unparalleled expertise in information, technology and business process outsourcing, shared services, finance and accounting, and benchmarking. The firm is fact-based and client-focused, with a proven methodology that fosters success.  Alsbridge defines client goals and scope, finds the best cultural fit with providers, refines the best solutions and eases transitions and implementation. Founded in 2005, Alsbridge is the proven, effective difference. For more information, visit http://www.alsbridge.com/.

Contact:

Don Montgomery

Alsbridge, Inc.

Office: (214) 696-6410

inquiry@alsbridge.com