ABSTRACT 

Business process outsourcing has become more prevalent as organizations attempt to manage costs and focus on more important core activities.  Very little research has been undertaken however to consider the effects on employees that are also outsourced or transitioned to the service provider.  This exploratory research considers predictors of work attitudes and outcomes of a group of employees that transitioned from a large retail bank to an outsourcing provider.  Hierarchical regression analyses indicated that the process of managing the transition had significant effects on employee attitudes.  Unmet expectations was found to have widespread effects on employee attitudes and outcomes.  Organizations undertaking outsourcing initiatives must pay particular attention to the planning and managing of this transition.  Suggestions for handling this complex change are offered.