❑ Case Study

Q1. Your ability to recognize that you are solving

client issues NOT presenting your company and
what you can do? (15 marks)

 Ans. Focus of presentation:-

 Issue #1: Post-Contract Processes and Decision Rights Not Understood
 Based on TPI’s interviews and analysis, the #1 problem in outsourcing implementations is a lack of understanding of
post-contract processes and decision rights. Simply put, clients and service providers are not operationally prepared to
work together after contract signing. The results are that services simply aren’t performed, implementation activities get
stalled, client stakeholders and service provider staff are both frustrated, and the entire schedule for achieving expected
business benefits is delayed.
 Issue #2: Little or No Support From Client Leaders Receiving Services
 Another significant problem that exists in many outsourcing implementations is the lack of buy-in from senior client
leaders who will be recipients of the outsourcing services. This can result in active or passive resistance to the entire
outsourcing model; create the desire for "special treatment" or opt-out from the outsourcing services, and results in
business case deterioration.
 Issue #3: Inability to Meet Pent-Up Demand for Services
 Prior to an outsourcing implementation, the client organization may curtail big projects and non-essential spending. This
is for two reasons:
 the client may wait for the expertise of the service provider before initiating activities
 the client may limit its investments in the area designated for outsourcing
 Issue #4: Culture Clash Between the Client and Service Provider
 TPI sees culture clashes between a client and service provider occurring on two levels: corporate culture and
(increasingly in today’s global economy) national/regional culture. In terms of corporate culture, the client and service
provider may have different norms in terms of speed, style, decision making and organizational structure.
Q2. Able to demonstrate that you understand
what an outsourcing company role is about?
(25 marks)

 Ans. Understanding of Outsourcing:-

 A corporation that does business process outsourcing (BPO) for other companies is known as an
outsourcing company. Outsourcing is the practice of having components or functions of one company
done externally by another company. An outsourcing company can provide any number of services.
Some outsourcing companies focus on particular specializations such as animation, medical
transcription, legal services or finance and accounting. Outsourcing companies also cater to different
industries. Virtually all industries use outsourcing companies, including telecommunications, finance,
retail, healthcare, manufacturing, logistics, media and many more. Companies that outsource their
services do so for various reasons such as to reduce operating costs and to have an outsourcing company
undertake time-consuming functions. Outsourcing companies naturally benefit as well from this
business as offshoring provides employment and is a major contributor to national economies of the
outsourcing companies’ countries.
Q3. Showing that you understand the difficulty and need to be sensitive when
dealing with people about to lose their jobs.
(20 marks)

 Ans. Dealing with redundancies in the client company:-

 My own studies (see for example Morgan, 2009; Morgan & Symon, 2006) suggest that the experience of going through
an outsourcing transfer can be very emotionally charged. Staff often feel let down, angry, uncertain about the future,
and a distinct lack of control. They also feel that other people do not understand their experience Transferred staff find
it hard to ‘move-on’ because of this continued contact with the old organisation. One of the greatest issues for many
individuals, linked to the feeling of lack of control, is the fact that once an outsourcing transfer happens it is just the
start of a number of future employment changes, as the contracts are for a set period (often between two and seven
years), and even with a longer-term contract, renegotiations and changes of employer can happen at any stage. (In one
example I know the staff are now on their seventh transfer).
 I believe that an understanding of the psychology behind such transfers and the ongoing multiple relationships can be
helpful to a range of psychologists who may increasingly meet people who have experienced this. In my research I have
found many theories, often interlinked and moderated by other variables, which can inform the subject. I turn to these
now.
 Stress and coping
 The emotional aspects of organizational change will of course be influenced by the extent to which people are
concerned about job loss, and changes to their role, but also by how much psychological attachment they have to the
organization.
 Attachment theory
 The response of others can be vitally important. Kahn (1998) suggests adults at work require anchoring relationships
(the adult equivalent to a secure base). Therefore colleagues in the organization can create a temporary space for
relational work, supporting each other particularly in times of crisis. It is likely that these relational systems may be
broken and/or strengthened during an outsourcing process.
 Coaching managers to handle the change more sensitively and effectively is also likely to be useful. Research has
indicated that managers can reduce the stress of change for their employees (Yarker et al., 2008).There is often an
assumption that managers know what to do when implementing potentially stressful change, yet my own research
suggests this is not the case. Managers, whether or not they view themselves as ‘safe’, tend to avoid giving bad news.
Devoting time and effort to others’ distress has emotional and time costs. Despite the substantial evidence of high
benefits and low cost, managers still ignore the emotional feelings of their staff.
 Q4. Expect the client to ask 5 questions about your company and
the service you are providing? (40 marks)

 Ans. Dealing with Questions:-

 1. ARE YOUR CUSTOMERS SATISFIED?
 2. COULD YOU SHOW ME SAMPLES OF PREVIOUS WORK, ESPECIALLY ONES THAT ARE
RELATED TO MY COMPANY?
 3. WHAT IS THE SIZE OF THE TEAM THAT WILL BE INVOLVED WITH MY COMPANY?
WHAT IS THEIR EXPERTISE?
 4. WHAT ARE YOUR SECURITY MEASURES?
 5. WHAT ARE THE CONTRACT DETAILS?