Abstract:
Organisations worldwide are continuing to offshore more and more of their work tasks
across national boundaries, to countries with lower labour costs. These offshored
tasks, which were performed by local knowledge workers in the past, now also include
activities like research, development, and innovation.
In a time where growth industries are those with the highest degree of knowledge
work, and the most profitable organisations are those with the most knowledge
workers, the importance of retaining these valuable resources by ensuring a healthy
employment relationship cannot be over emphasised.
The purpose of this study was to investigate the impact that knowledge task offshoring
has on the employment relationship of knowledge workers. A quantitative research
methodology was followed, and the responses of 85 individuals were examined
through the theoretical lenses of the psychological contract, organisational
commitment, turnover intention and job insecurity.
The main findings of the research was that offshoring resulted in higher levels of
perceived psychological contract breach and violation scores, while it did not have any
negative impacts on the scores for job security, turnover intention, organisational
commitment or perceived employer or employee obligations associated with the
psychological contract.
