XML’s client had secured an outsourced Managed Service contract from a large telephone operator in South America, which required it to deliver a function which had previously been provided in-house, by the operator’s own employees. The contract stipulated the need to re-employ absolutely all employees to deliver the new Managed Service.
XML was tasked by the client to take over the employees concerned, and to deploy them in providing the new Managed Service, as the client did not have the skill to create a company-wide contingent labour program and protocols. The key challenges were to avoid resistance, keep within agreed budget, and ensure that we did not lose any of the employees in the process. This was made more difficult by there being some changes in the compensation package, as well as by the terms that our local XML subsidiary was instructed to provide. Additionally, while there was no union involvement, the employees themselves spoke regularly with each other, comparing notes throughout the process.
Assessing this an assignment requiring significant diplomatic skill and experience, XML appointed a senior manager to lead the project. He first conducted one-on-one conversations with all stakeholders, taking onboard all concerns and going to great lengths to devise contracts and terms that would satisfy employees, operator and XML client, the MSP contract holder. As a result, we were able to complete the process with total success. In more detail, XML studied the situation, created protocols, policies, standards and codes for the contingent labor program, ran a gap analysis on all aspects applied to the industry best practices standards, educated the client, bridged compliance gaps and delivered significant cost savings. Key to this was the effort we put in to demonstrating to the employees that, despite some changes in their terms and benefits, they would not overall be any worse off. In fact, they were likely to be better off in their new status as employees of XML’s subsidiary in their country. XML is still continuing to improve the operations and apply new compliance measures if and when required.