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

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CISO in Software, 51 - 200 employees
CIO in Education, 201 - 500 employees
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.
EVP - Global Service Delivery in Services (non-Government), 10,001+ employees
Not at all.  While there is major strength in the US driving much by education, outsourced employees can shine just as bright as any.
CIO in Services (non-Government), 5,001 - 10,000 employees
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
Director Project Management Office in Healthcare and Biotech, 501 - 1,000 employees
Director Project Management Office in Healthcare and Biotech, 501 - 1,000 employees
Yes... top talent will leave.
CEO & Founder in Software, 11 - 50 employees
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.

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