In-sourcing and TUPE Case Study

The Client

A leading University IT Department

The Requirements

We were contacted in late 2008 and asked if we could advise the University’s IT Department on the likely issues they would face and on how these should best be addressed, when proceeding with their plans to in-source a number of IT functions that some 10 years previously had been out-sourced to a private sector supplier. The University’s intention was to not renew the existing outsourced contract on its expiry. They needed a preliminary assessment and due diligence exercise to be carried out on the technical TUPE issues, and were seeking recommendations on how to address the HR implications of proceeding with a wider transformation of all their IT services.

What we did

We reviewed all the available historical and contemporary documents relating to the original outsourcing and the proposed in-sourcing of various IT services and conducted a series of interviews with key stake-holders. We applied the standard TUPE definitions and were quickly able to confirm that the proposed in-sourcing would indeed be subject to the TUPE regulations. The contract with the existing private sector supplier precluded any early formal due diligence activity and therefore one of our early recommendations was that the University should seek early informal discussions with the supplier with a view to ensuring a positive end of contract experience for the supplier in return for being able to undertake valuable pre transfer and pre transformation preparations with both the affected outsourced staff and their representatives and with existing  University staff.

We made a series of recommendations including:

  • The development of a relationship with the trade unions that will facilitate the early implementation of the detailed HR Due Diligence process and of the consultation machinery and process.

  • The development of a Communication Plan designed to articulate and sustain:

  • the strategy of transitioning the Services back into the University;

  • the ITS transformational Strategy.

  • The creation of an appropriate and efficient organisational structure with appropriately defined roles and responsibilities especially at management level

  • The creation of an appropriate and integrated organisational culture for the  IT Department

  • The transition/integration of appropriate outsourced staff into the ITS organisation following detailed due diligence.

  • The buy-in of customers; stake-holders; staff; and elected staff representatives to the overall transition and transformation process.

  • Issue a formal HR data request to the outsourcer as early as practicable and agree the HR information that Unisys is to provide.

  • Conduct detailed HR due diligence based upon the above data. Establish special consultation machinery to allow the appropriate participation of Unisys staff representatives (probably elected); Unisys Management representatives; University Staff Representatives (from the appropriate trade unions); and University Management representatives, in both the transition and the transformation.

  • The development of an appropriate Competency Framework to describe and map the behavioural competencies and technical skills required by the new organisation at all levels.

  • The development of an appropriate Career Framework linked to the above Competency Framework and to the University’s Grading, Remuneration and Reward structures. The purpose of which will be to show staff the various career paths available within the Department and to therefore help the process of staff and organisational development.

  • The development of appropriate Job Families and summary Job Profiles to describe the types and levels of the various jobs within the new organisation. These should be integrated with the above Competency and Career Frameworks.

  • Conduct initial Staff Appraisal and Development to ensure staff are appropriately equipped with the necessary skills and competencies (from both technical and behavioural perspectives) to discharge the responsibilities of their roles within the transformed department.

 

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