IS outsourcing initiatives are often coupled with changes to the in-house IS function, resulting in significant changes to the rank, size and responsibilities of IS personnel—including retrenchment, re-assignment or redeployment (collectively termed as “IS resizing”). Despite recognizing its importance, there is very limited understanding of how organizations manage the reorganization of the IS function and in-house IS personnel when undertaking outsourcing efforts. Addressing this important gap, this dissertation seeks to examine the issues surrounding IS resizing and IS outsourcing by focusing on the psychological contract expectations and violations of IS survivor employees. We theorize and focus on three kinds of IS resizing approaches—downsizing (layoff), outplacement (redeployment to an external vendor) and inplacement (internal reassignment). Drawing on the psychological contract perspective, social identity theory and literature on outsourcing and IS personnel, we propose a model linking the psychological contract violations experienced by IS survivor employees to the nature and extent of IS resizing approach adopted and the psychological contract type of the IS employee. We also incorporate transition management as a critical component in mitigating the psychological contract violations that arise due to IS resizing and outsourcing. We conducted this research using a multi-method approach with qualitative interviews, followed by a field survey of IS Resizing survivors. Due to its highly practical nature, we feel confident about this study's potential contributions to senior and middle level managers who are considering major organizational changes such as IS outsourcing.