Sunday, October 8, 2017



Outsourcing seems to be the way to go for energy companies to make profit, and offer lower price to its customers (Thompson & Xinglei, 2011). Companies like Exxon Mobil for instance, have been successfully using outside firms to find qualified drivers to drive their fuel trucks(Bowen, 2008). The oil company was in desperate need of a better hiring strategy as it was losing money due to high turnover (Bowen, 2008). According to Bowen (2008) the hiring process was a challenge for Exxon. This led them to hire a Recruitment Process Outsourcer (RPO) in 2007 that knew the trucking industry very well. As Burdette (2015) explains, a third-party mapping company can produce cheaper and higher quality map data. This takes advantage of the benefits of specialization, so the oil companies can focus on their core competencies.
The oil companies put a lot of research into deciding whether to outsource offshore. Outsourcing is also a way to advance countries because they improve infrastructure and technology due to the flow of outside cash into the region. Therefore, lowering costs for production ensures increasing income for the further advancement of the company together with the economy of the country where the business is located.
With operation cost down, the oil companies are able to drop the price of gas. When gas prices are down, people are able to save money and spend it on other things (Matthews, 2012). In the long-run the company is able to grow globally.

Burdette, T. (2015) Top 4 reasons why oil and gas companies are using outsourcing for their mapping needs. P2 Energy Solutions. Retrieved from
Smith, A. (2012). The Pros and Cons of Outsourcing. Las Vegas: University of Nevada. Retrieved from University Libraries:
Matthew, M.(2012) Companies 'Outsource' Because That's Where The Sales Are

No comments:

Post a Comment

Today's Top Picks for Our Readers:
Recommended by Recommended by NetLine

Featured Post

Johns Hopkins Aramco Healthcare Business Case Study

Business Case:   Johns Hopkins Aramco Healthcare    Operations Management Report   Table of Content...