Outsourcing of Information Technology has been a significant trend in the global economy. The success of outsourcing depends on the employees involved in the process. This study aims to explore the variables- Work environment, Nature of Work, Job satisfaction, Roles and Responsibilities, and Rewards and Recognition; impacting employee morale due to IT outsourcing in the Irish Banking sector. The sample population will comprise of three categories of employees-retained employees, employees from the outsourced partner and employees transferred to the outsourcing partner as part of the deal from three different organizations. The data will be collected through a mixed method of email interviews and surveys. The analysis of the data shows that employees from the outsourced partner and employees transferred to the outsourcing partner were mainly impacted by the variables-Career development and Promotions, Social Interactions; and Feedback and Recognition. The findings also demonstrate that most of the employees were satisfied that outsourcing was communicated and carried out efficiently.