Wednesday, October 2, 2013

Issues with outsourcing trade contracts in the Middle East

Within the Middle Eastern energy sector, it is common practice for large scale construction to involve several contractors working together on different specialist areas to complete the project.
For example, an oil firm such as Aramco would need several different outsourced contractors to complete construction of a new pipeline.
These outsourced companies can provide anything from specialist hardware used to construct the project through to service assistance and legal aid in wrangling out negotiations.
The reason these contracts are so common is that they are very specialist jobs and so require extra expertise in the field in order to negotiate potential risks and obstacles.
Such is the scale of these types of development that firms are required to be hired for safety inspectors, site managers, security and transportation of materials.
With thousands of elements all working in unison, projects are often broken down into segments to allow one person to be accountable for one aspect of the build.
The difficulties lie in choosing the right contractor who is capable of delivering your requirements on budget and to the standards you expect.
Reputation is a huge aspect of outsourcing contracts. If you’re firm is to stand a chance of winning a lucrative contract it needs to be a trustworthy source and the best way of ensuring that is through a well maintained reputation.
Similarly, in such economic times, smaller firms may be struggling and if they go into liquidation it could lead to disruptions and unforeseen delays in any construction or trade project.
Of course, there are benefits of outsourcing services. Your firm may not be specialised enough to carry out a particular part of the project or it could need access to specialist equipment.
Outsourcing allows a company to bring in new ideas and services on a temporary basis as and means it saves money by not having to employ or purchase the equipment, which it wouldn’t need once the work in completed.

Outsourcing plays a crucial role in many industries across the Middle East and multi-million dollar contracts are exchanged regularly making it an extremely lucrative sector to enter.

No comments:

Post a Comment