Outsourcing in the Persian Gulf petroleum supply chain

Abstract

Purpose – The purpose of this study is to identify the challenges, the benefits, the risks and the motives of petroleum companies in the Persian Gulf toward outsourcing strategy. While the petroleum companies are faced with massive costs of operation that stem from the aging infrastructure, human capital deficit, inefficient fragmented business processes and lack of access to new technologies, outsourcing strategy toward cost savings and the overt and covert resistance of management and employees are significant barriers for creation of continuous process. Design/methodology/approach – Based on the review of existing literature, the industry ' s archives and in-depth personal interviews with senior executives of the national oil and gas companies in five Gulf countries and seven global outsourcing companies and 87 survey responses, this study develops a methodological framework which substantiates or refutes the hypotheses based on the objectives: industry challenges are the driving forces behind outsourc...