INVESTMENT OPPORTUNITY: BUSINESS PROCESS OUTSOURCING IN THE OIL AND GAS INDUSTRY NIGERIA; THE OPPORTUNITES In the face of increasing competition, inability to secure to right personnel/ manpower and lean resource available to a company, executives have had to contract part of their operations and responsibilities to third party agent who carry out such functions for a fee that is usually cost effective compared to when the company provides it on its own thereby helping to conserve resource without comprising on quality. Business Processing Outsourcing {BPO} is a form of outsourcing that involves the contracting of the operations and responsibilities of a specific business function or process to an outsider or a third party agent service provider to execute. Business process outsourcing can be applied in almost every aspect and segment of business and some of the areas include Information Technology, Telecommunications, Maritime, Banking, Oil and gas, Manufacturing etc In outsourcing, we have the in-source, in which case, you are sourcing the services within the shores where the company is located while out-source is a situation whereby the services are sourced from outside the shore of the country where the company is domiciled. Business Process Outsourcing has now become an avenue to multinational companies to outsource certain areas of their business operations to other parties to handle for them. Business process outsourcing opportunities exist in every segment {down-stream, middle-stream and up-stream} of the oil and gas industry in Nigeria. They have long been used in the oil and gas industry in Nigeria in the sourcing of machinery and equipment, security services, catering services, construction, dredging and many more services. The recent enactment of the Nigeria oil and gas industry content development Act meant to encourage the participation of indigenous firms in the oil and gas industry has certainly opened a lot of investment opportunities. The Act specifically imposes an obligation for the maintenance of a required Nigerian content level on all subsequent contracts and agreement carried out by companies operating in the Nigerian oil and gas industry. Business process outsourcing services in Nigeria is still at the developing stage and this could be attributed to lack of information about the subject matter in the country .It is mostly deployed in the telecommunication and oil/ gas industry because the industry is largely controlled by foreign entities with a well grounded knowledge of the benefit and use of business process outsourcing.
Posted on: Mon, 15 Dec 2014 13:28:12 +0000
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