Good people management is key to successful outsourcing

Citation

(1999), "Good people management is key to successful outsourcing", Industrial and Commercial Training, Vol. 31 No. 3. https://doi.org/10.1108/ict.1999.03731cab.009

Good people management is key to successful outsourcing

Good people management is key to successful outsourcing

Keywords Corporate culture, Information, Management, Outsourcing, Personnel, Skills

Choosing an outsourcing provider is similar to getting the right person for the job, according to a new guide on outsourcing which says that good people management skills are key to making the outsourcing process work.

The IPD Guide on Outsourcing aims to help those with personnel responsibilities deal with the issues involved in the growing trend towards outsourcing.

Angela Edward, IPD (Institute of Personnel and Development) policy adviser, says that, although decisions about outsourcing are a matter for general business strategy, they have major personnel and development implications. "The way in which the relevant management processes are handled has a strong influence on the effectiveness of outsourcing", she says.

According to the guide, outsourcing is a growing trend. The range of functions that are outsourced is also expanding. Angela Edward believes that this is because many companies are focusing on what they see as their primary function and purchasing support from outside sources. "Outsourcing also gives companies access to skills and experience which may be difficult to develop within the organization", she says.

The IPD Guide on Outsourcing discusses what personnel and development professionals can contribute to the oursourcing process.

It highlights how indirect sources of information, such as comments from job applicants, exit interviews, staff experience of customer contact and professional contacts, can be valuable when deciding whether and what to oursource.

It also discusses the advantage of bringing a people management perspective to the business of selecting a provider. "Making a final choice of provider has similarities to the selection of a candidate for a job", says the guide. The contract specification is compared to the job description; the degree of importance placed on pricing to the weight given to the salary level sought by short-listed candidates; and the tenderers' experience, expertise and style to the job candidates' know-how and personality.

Other important people management considerations include developing the client role and managing the career implications for both staff due for transfer to an external provider and staff staying with the client company.

"Successful organizations recognize that organizational culture and people management issues are at the heart of cultural change. No new management practice will achieve its end unless it is delivered by a motivated workforce. Creating a culture in which outsourcing is seen as just one possible means of improving organizational effectiveness provides both a challenge and an opportunity to personnel and development professionals to prove their value by contributing an informed input to the wide-ranging business agenda", says Angela Edward.

For further information, contact the Institute of Personnel and Development, IPD House, Camp Road, Wimbledon, London SW19 4UX. Tel: 0181 263 3251. Fax: 0181 263 3244. Website: http://www.ipd.co.uk