Do companies that outsource IT end up losing their best employees?

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yes

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Not all of them if they do it right. You keep your best people to fill gaps and serve as liaisons between the company and the providers. You want a knowledgeable layer there and should retain your best folks for that.

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Not at all. While there is major strength in the US driving much by education, outsourced employees can shine just as bright as any.

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Heck yes. The outsourcer will likely try to keep the best only for knowledge transition and then move the top resources to other newer clients but they won’t keep top talent in legacy customer account unless customer is savvy enough to require via contract

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Yes

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Yes... top talent will leave.

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Unless you are doing 100% outsourcing, the answer is No. selective outsourcing of commodity work and roles actually have shown improvement in morale. Employees can transition that work and focus on high value add items. Also it can free up time to focus on automation, learning new skills, or diving into emerging technologies.

Do companies that outsource IT end up losing their best employees?

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When the business’s needs exceed the abilities of the internal IT team, outsourcing IT is a better solution than giving the internal team more resources.