people3 Reports New Findings on the Impact of
Outsourcing Decisions on IT Employees
BRIDGEWATER, NJ — April 26, 2001 — As the typical enterprise transitions to one in which a significant amount of the IT functions are outsourced to external service providers, the competency balance has shifted. The heaviest weight is on the side of business and behavioral competencies rather than the side of technical skills and competencies. people3, a Gartner, Inc. (NYSE: IT and ITB) company, released these findings in its Quarterly Trending Report, "Outsourcing -- Keeping the Human Factor In."

"The area that presents significant challenges, and one that is often given the least attention during the outsourcing process, is the management of human capital issues," stated Linda M. Pittenger, president and CEO of people3. "Managers understand that employees may be let go, move to the outsourcing company, or stay behind to lead the new organization. However, what they do not always understand is how to successfully manage these changes and how to manage this critical transition process."

In the report, people3 advises companies to consider, as a general guideline, those functions lower on the value chain as candidates for outsourcing, and target those functions higher on the value chain (such as architecture development or business relationship management) as areas to develop as internal capabilities.

The report also details several emerging job roles whose functions and responsibilities are associated primarily with the outsourcing effort, including: vendor relationships manager, outsourcing contracts manager, IT contract administrator and customer relations manager. The report provides in-depth job descriptions and range of compensation paid to these professionals.

If you are interested in purchasing people3's Quarterly Trending Report or learning about people3's consulting capabilities, please contact us at people3@gartner.com

About people3
people3, the world's leading authority on IT human capital, provides "people solutions" for IT organizations. Supported by seasoned human resources and IT consultants who understand the unique languages and issues of both the HR and IT communities, people3 helps its clients to accelerate the achievement of their goals by maximizing their human capital. Along with its custom consulting services, people3 also delivers solutions through an IT workforce management software tool called peoplepower, and an annual compensation study that focuses solely on the IT industry. people3, a Gartner company, was founded in October 1998 and is headquartered in Bridgewater, New Jersey. For more information on people3, please call us at (888) PEOPLE3 or visit our Web site at www.people3.com.


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