Outsourcing and takeovers: The employee perspective

Outsourcing and takeovers: The employee perspective
Living in change mode
Logos and business cards change hands, but people remain the same.Outsourcing and takeovers bring change for everyone involved.Four employees who took "indirect" paths to the world of Deutsche Telekom illustrate ways to deal with shifting emotions, challenges and opportunities.
"Change alone is eternal," said Arthur Schopenhauer. The saying is particularly applicable to today's working world, where takeovers and outsourcing deals are par for the course and can turn individual career planning upside down. People's reactions to radical changes in their working situation vary as much as their inherent natures – whether they are bold, shy, skeptical, optimistic, hesitant or resolute. Still, those most affected by outsourcing and acquisitions experience mixed feelings as they make their way through these processes. "First comes the shock of being taken over by another company – after all, it is not a new employer's decision alone. At first, anger and denial are probably normal, until you get used to the idea," says Jo Brobbel, Global Component Service delivery manager at T-Systems, 46. The Netherlands native had worked for Shell for 21 years before the oil group outsourced its IT and a staff of 1,000 to T-Systems in 2008.
 "The first announcement prompted mixed feelings and unresolved questions. There was hope, but there was also fear," 29-year-old Pascal Thuet remembers. "At first it is unclear whether the location will change, how your job duties will change or whether the contract terms will continue as before," says the French native. Thuet, formerly IT engineer at the automotive supplier Peguform, saw two takeovers within as little as half a year: first the outsourcing to gedas, and then the switch to T-Systems.
Change managed professionally
Human resources professionals have a name for this typical wave of emotions: Kübler-Ross' "change curve". Because these processes take time, rumors that crop up in the wake of a takeover and the fears associated with them are unavoidable. "We try to communicate actively and transparently from the day it is announced," says Susanne Dietrich, Senior Vice President HR at T-Systems. "It is always best if we can make our appearance together with the former company early on." The HR expert has overseen more than 40 takeovers. A sustainable social responsibility scheme can even be crucial to success, as it was in the outsourcing agreement for 37 employees of Linde AG.
"We have a standard procedure for takeovers that we are constantly fine-tuning. It includes various events and individual conversations to discuss contract terms. This is followed by orientation training that conveys how day-to-day processes such as travel bookings or expense reports function," says Susanne Dietrich. Roughly 15 project heads from the HR New Business and Transformation Management unit, along with teams from the different countries, see to it that communication runs smoothly. 
The effort is paying off. "The HR team was always available during the transitional phase. There were a number of events, but also the chance to clarify open questions in direct conversation. The terms of the former employment contract were retained in principle," says Jo Brobbel of HR's supervision.
Different dimensions
Roughly 230,000 employees worldwide work for the Deutsche Telekom Group, about 46,000 of them for T-Systems. For many newcomers, the sheer size of Deutsche Telekom is breathtaking. "We thought, 'Oh no, now we're really just cogs in the machine'," remembers Sieglinde Walz, head of Automotive Dealership Sales. The 46-year-old came to T-Systems by way of the takeover of debis, where she was involved in a multitude of consulting projects and services, above all with mid-sized Daimler car dealerships.
When outsourcing deals happen, close relationships with former co-workers are the first things to change. "There are no more 'direct lines' to the authorities – the requirements for transparency and documentation are simply different," states Pascal Thuet. While he was heavily involved in day-to-day departmental life at Peguform, this has changed significantly. "My former co-workers are now customers," says Thuet. "It's a completely different type of collaboration – I can't just call them over."  "It is important to get to know structures and processes, because clarity and transparency are a big help," says Stefan Elsässer, Senior Consultant SI, who came to T-Systems from the former Volkswagen IT service provider gedas. Thuet agrees. "It takes a while to understand the new acronyms, departments and organizations and to build your own network so that you can find the right person for a specific issue."
The structures may be more or less complex, depending on the previous conditions. "The corporate culture is different. Shell is a huge company; all processes are international. It has parallels with T-Systems," says Jo Brobbel, who was used to the structures of the 112,000 employee-strong oil corporation.
Finding one's niche
After corporate transfers are announced, one question that concerns every employee is what their new job will be like. "It was important to me to take an active part in the switch and not to wait to see what position I might be put into in the new structure," remembers Stefan Elsässer, 45, who previously worked at gedas as a project manager in logistics. Elsässer, a logistics manager by training, thought about his roots, looked for contacts in logistics at T-Systems and found a product manager with whom he developed a working relationship. As senior consultant, he now combines sales with technology.
Sieglinde Walz also took the change in stride: "Worries about your job have no basis if you have a good relationship with your customers," she says. "They are still your customers will always take center stage. Still, many people are upset by change. It is only when the fears of a job roulette dissipate that shared creativity develops, resulting in new, comprehensive solutions for our customers."
 "Finding one's niche" applies not only to individual employees but to entire business lines. For example, T-Systems now possesses concentrated expertise in the automotive industry. On the heels of debis, which focused on Daimler and BMW, the gedas takeover expanded contact with the Volkswagen Group – bringing consolidated expert knowledge of the big players in the German automotive industry under one roof. As recently as May, another service deal with MAN added strength to the commercial vehicle line.
Opportunities for advanced development
"T-Systems has very different resources from an IT department when it comes to advanced training," says Pascal Thuet, who advanced at T-Systems from a position as system analyst to one as project manager on the basis of project management training courses. "Even in soft skills, the course offerings are very broad."
"Organizing the Service Academy on this scale is a real feat," says Sieglinde Walz. The sales expert sees it as the perfect grounding experience when managers work in T-Punkt stores and call centers and see what happens in day-to-day customer interaction and customer service. "In addition, networks are formed, which also serve to break down the monolithic, faceless structures," says Walz. The "newbies" all agree that the information provided by Deutsche Telekom on the intranet is above average.  "The chat rooms with the Managing Board are a very good idea," says Walz. Deutsche Telekom's USP as a one-stop ICT provider is perceived by customers as an advantage. "In my opinion, this positioning affords great potential in the area of supply chains," Stefan Elsässer proposes. Sieglinde Walz confirms this for the automotive dealer area as well.
The journey continues
Cost-efficiency is traditionally a hot topic in financially challenging times –  and frequently results in a consideration of outsourcing alternatives. Further transitional phases are likely in the near future. A sophisticated change management plan acts as the basis for takeovers from which motivated employees emerge. But commitment from the HR staff is also important. "Our goal is to guide people with plenty of attention and a sense of humor," says Dietrich. "In an exaggerated sense, we need to find the right shoe for the employee we are supporting and go the extra mile to find a fair solution for everyone."
Currently, Dietrich's HR team is working on conducting employee surveys not only a few months following a transition, but one year later as well. "The results of the transition survey show that new employees become reconciled to the situation relatively quickly, and that even after a year, fundamental satisfaction is still very high." Asked about the mindset that she recommends to the employees who are affected, the HR expert answers,"Be open and curious, ask critical questions constructively, don't try to work through your concerns on your own, and above all,don't look back – look ahead."
 

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