Working as a project manager in the outsourcing industry, I have led and been part of many project teams, both

virtual and collocated. Among the many challenges that I had to go through in order to build and lead effective teams that could perform as expected, I consider the most demanding were when independent contractors or consultants would be part of the project team. In an industry characterized by demands for providing complex solutions at lower costs and low turnaround time, the impact of the expected staff turnover rates of around 30% annually (International Labour Organization, 2010) demanded the organization to adopt flexible solutions. For projects that, for a short period of time, would demand specialized skills not available in-house, the organization would turn to acquire such talent from independent contractors. If by definition a team is a group of people who share a common aim and in which the skills of each individual complements those of the others to be able to achieve that common task (Thomas, 2004, p.4), then the use of independent contractors should not represent a disruption to this dynamic. Nonetheless, based on my professional experience, cohesiveness and atmosphere are the two properties most affected when mixing independent contractors and employees as part of a project team. For instance, independent contractors affirm that not being concerned about moving up the corporate ladder makes them more focused on the task at hand and work as a team, and hence an overall much happier employee (Human Capital Institute, 2007). However, I understand that this affirmation shows a detachment of commitment, personal confidence, faith and passion for the people in the organization (Wong, 2007), which impacts directly on their motivation. Moreover, as Thomas points out, collectively belonging to a team helps the individuals align their own goals with the goals of the projects to which they are assigned as they focus on their role in achieving these goals (2004 cited in University of Liverpool/Laureate Online Education, 2013a, p.2); hence, if this sense of belonging is lacking, team efficiency and effectiveness can suffer (Thomas, 2004, p.87). Additionally, the task of promoting good performance by balancing mandatory and discretionary activities (Williams, 2007) is also affected by the impossibility of empower independent contractors, mainly because of their lack of continuous involvement with the organizations clients (Dunlap and Girvin, 2009). Finally, since cohesiveness is affected, stress-causing factors start affecting the employees (University of Liverpool/Laureate Online Education, 2013b): for example, because of the role uncertainty that the independent contractors might bring, which occur when specific responsibilities are not clearly defined (Emerald Insight Staff, 2005, p.32). In conclusion, the pros and cons of the consequences must be weighed against the business motivations behind bringing independent contractors to a project team environment. Besides the points I have made of their impact in teambuilding and performance, Dunlap and Girvin point out that in general, using an independent contractor assures less control of the process and the resulting end product to you, the business owner, and more control to the independent contractor (2009, p.14). Reference List Human Capital Institute (2007) The Talent Shift: Align Your Business with the Future, Now [Online]. Available from: https://elearning.uol.ohecampus.com/bbcswebdav/xid-491473_4 (Accessed: 18 May 2013) Dunlap, M. & Girvin, D. (2009). Independent Contractor or Employee?, Journal Of Financial Planning, Jul 2009, Business Source Complete [Online]. Available from: http://ehis.ebscohost.com.ezproxy.liv.ac.uk/eds/Citations/FullTextLinkClick?sid=f36298a4-ad3a-4981-b8b655597c3b5a61@sessionmgr198&vid=3&id=pdfFullText (Accessed 17 April 2013) Emerald Insight Staff (2005) Stress Management. Emerald Group Publishing Ltd [Online]. Available from: http://site.ebrary.com/lib/liverpool/docDetail.action?docID=10149898 (Accessed: 15 May 2013). International Labour Organization (2010) UN Reports On Outsource Jobs [Online]. Available from: http://www.ilo.org/wcmsp5/groups/public/---ed_protect/---protrav/--travail/documents/pressrelease/wcms_142971.pdf (Accessed: 8 May 2013). Thomas, N. (2004) Concise Adair On Teambuilding And Motivation. University of Liverpool Catalogue [Online]. Available from: http://site.ebrary.com/lib/liverpool/Doc?id=10088330 (Accessed: 10 May 2013). University of Liverpool/Laureate Online Education (2013a) Lecture Notes Week 6: Leading effective project teams (1) [Online]. Available from: University of Liverpool/Laureate Online Education VLE (Accessed: 10 May 2013). University of Liverpool/Laureate Online Education (2013b) Week 7: Leading effective project teams (2) [Online]. Available from: University of Liverpool/Laureate Online Education VLE (Accessed: 18 May 2013).

Williams, M. (2006) Mastering Leadership: Key Techniques For Managing And Leading A Winning Team. University of Liverpool Catalogue [Online]. Available from: http://site.ebrary.com/lib/liverpool/Doc?id=10141072 (Accessed: 2 May 2013). Wong, Z. (2007) Human Factors in Project Management: Concepts, Tools, and Techniques for Inspiring Teamwork and Motivation. San Francisco: Jossey-Bass.