I’ve been in change management for over two decades, and I can honestly say I’ve never seen anything quite like what’s happening right now. Organizations are simultaneously rolling out AI initiatives while restructuring through outsourcing partnerships. It’s like trying to renovate your kitchen while also moving to a new house—both make sense individually, but together? That’s where things get complicated.

The thing is, most companies I work with treat these as separate initiatives. IT handles the AI rollout, HR manages the outsourcing transition, and somehow, they expect employees to just… adapt. But here’s what I’ve learned: when people are already anxious about their jobs being outsourced, introducing AI feels like a double punch. Suddenly, they’re not just worried about their work going offshore—they’re wondering if they’ll be replaced by an algorithm too.

The Emotional Reality

During a recent client meeting, one participant captured what everyone was feeling. Sarah, a finance analyst, put it perfectly: “First they tell us accounts payable is moving to the shared service center in India. Fine, I get it—cost savings. But now they want me to learn this new AI tool that can do variance analysis in minutes instead of hours. So what exactly am I supposed to do all day?”

That’s the heart of it right there. People aren’t just learning new tools or adjusting to new vendors—they’re questioning their entire value proposition. And if we don’t address that fundamental fear, no amount of training or communication is going to work.

What Actually Works

The organizations that are getting this right aren’t treating AI and outsourcing as separate changes. They’re reframing the entire conversation around what we at alliantConsulting call “strategic repositioning.” Instead of “your job is changing,” it becomes “your role is evolving to focus on higher-value work.”

Take one of my clients in financial services. Instead of announcing layoffs due to outsourcing and then separately rolling out AI tools, they did something clever. They identified the work that was staying internal—the complex problem-solving, relationship management, and strategic decision-making. Then they showed people exactly how AI and outsourced support would free them up to focus on those areas.

The key was timing and narrative. They didn’t say “learn this AI tool because your job depends on it.” They said “this AI tool will handle the routine analysis so you can spend more time on the strategic partnerships that only you can manage.”

Building Psychological Safety in Uncertain Times

Here’s something I’ve learned the hard way: you can’t just tell people not to worry. Fear is rational when you’re facing multiple changes that could impact your livelihood. What works is creating small, safe spaces where people can experiment and see the benefits for themselves.

One approach that’s worked well for our team at Alliant is what we call “collaboration showcases.” We set up scenarios where employees work alongside both AI tools and outsourced team members on real projects. Not training scenarios—actual work that matters. People get to see firsthand how the technology handles the tedious stuff while the outsourced partners bring specialized expertise, leaving them to focus on coordination, strategy, and client relationships.

The Skills Question Everyone’s Asking

“What skills should I develop to stay relevant?” I hear this question in nearly every session. And honestly, it’s evolved over the past year. It used to be about technical skills—learn Python, understand data analytics. Now it’s more nuanced.

The people thriving in AI-outsourced environments are the ones developing what I call “orchestration skills”—they know how to manage complex projects involving AI tools, external partners, and internal stakeholders. They’re becoming translators between different worlds, problem-solvers who can navigate ambiguity, and relationship builders who can work effectively across cultures and time zones.

Where Most Companies Go Wrong

The biggest mistake I see is treating AI and outsourcing as completely separate initiatives. I worked with one organization where the AI project team was in IT, the outsourcing transition was managed by operations, and HR was focused on workforce planning and retention strategies. Nobody was connecting the dots for the employees.

So people were getting mixed messages. The AI team was saying “this will make your job easier and more strategic,” while the outsourcing team was saying “we’re moving these functions to reduce costs,” and HR was talking about career development and new skill requirements. Employees were left to figure out on their own how these pieces fit together and what it meant for their future.