Group processes in outsourcing projects: implications for performance

This paper discusses potential issues with inter-group processes which may be exacerbated through outsourcing contracts. Conflict in group processes can adversely affect performance of individuals, teams and organisations. We use a multiple case study approach carrying out semi-structured interviews with 40 staff from 14 outsourced contracts which had been transferred into 6 outsourcing organisations. A number of in and out group categorisations were used. These included disparaging categories for the out-group (e.g. ‘robots’ or ‘suits’), and discussions of (un)professional behaviour linked to these categories – often indicating high levels of contempt. Implications for practice are highlighted.