Impact of Employment Status (Inhouse / Outsourced) on Employee Commitment

Abstract

The study aimed to find empirical evidence of employment status (in-house or outsourced) influences organizational commitment. The research sample was drawn from a multinational software company. The company employs in-house and outsourced employees. Two hundred software engineers were selected for the study. The sample was comprised of 100 in-house employees and 100 outsourced employees. Using Meyer and Allen’s (1997) “Three-Component Model” of employee commitment, organizational commitment was calculated. The analysis showed that there is a strong positive relationship between in-house employees and affective commitment with r = 0. 886. A moderate positive relation between outsourced employees and affective commitment with r = 0. 771. A moderate, but significant, positive relationship was found between in-house & outsourced employment and continuance commitment with r = 0.778 & 0.728 respectively. Also, a moderate, but significant, positive relationship was found between in-house & outsourced employment and continuance commitment with r = 0.709 & 0.678 respectively. The overall findings from this study suggest that employment status has a strong positive impact on affective commitment.