Unions in Outsourcing

This IDC study provides a qualitative examination of the influence of employment collective agreements when organizations outsource IT and IT-enabled business processes. The study provides insights based on 25 interviews with executives from the following stakeholder groups: end users, unions, sourcing advisors, and outsourcers. Outsourcing in unionized settings is special, particularly in countries like Canada where union density rates are comparatively high. There are unique issues, challenges, and business considerations that must be addressed, but they are not insurmountable obstacles.

"There is a well-known malapropism, 'familiarity breeds attempt,' and this accurately describes the movement of outsourcing services into unionized environments," says Jason Bremner, IDC Canada's research director for IT Services. "What outsourcers have found is that the commonalities between outsourcing in unionized and nonunionized environments outweigh the differences, resulting in higher levels of comfort for buyers and suppliers. The next step is to work with union representatives to ensure all parties are comfortable with the process."