Resistance to outsourcing: The impact of outsourcing IT services at Lucent Technologies, Inc

This study examines the growing business practice of outsourcing critical but “non-core” services for reasons of cost-efficiency and superior technical expertise. The focus of the research is on the impact of this outsourcing of information technology services on the company's IT employees. The study assesses employee perceptions of job security, compensation and competition, as well as psychological reactions such as resentment, anxiety, and other feelings with respect to outsourcing programs. The study goal is to determine the implications that employee reactions, whether positive or negative, may have for effective information technology change.; The research design employed for this study is a qualitative method, combining an extensive review of the relevant literature with a series of semi-structured interviews of employees at Lucent Technologies, a major information technology and telecommunications equipment manufacturer. IT employees are interviewed for an in-depth examination and discussion of their perceptions of IT outsourcing, as it affects them and their company. The study findings will constitute a significant contribution to the understanding of employee reactions to IT outsourcing, a major trend in corporate business, which will be of growing importance to companies in many fields in the years to come.