Expert predicts rise in outsourcing by regional businesses
Dr. Ali Sharab estimates billions of dollars of work are being outsourced across the Middle East
Outsourcing of business operations in the region will rise as the economic crisis forces companies to save on costs, Dr. Ali Sharab, founder of Foursan Al Hayah, a high-end management consultancy stated.
Outsourcing does not necessarily mean tapping into international markets as Dr. Sharab estimates that there billions of dollars of work being outsourced to companies in the Middle East itself. He called for more local outsourcing as companies outside region are not very familiar with the market and would not be able to provide specifically tailored solutions.
“Arab businesses are getting 35 per cent of the outsourcing, including companies in Egypt, Lebanon and Jordan. Outsourcing will witness a boom because businesses will need it to save costs. Ideally, it is better to go in for Arab companies in order to keep the money in the region,” said Dr. Ali Sharab.
While outsourcing gives businesses a competitive edge in tough times, Dr. Sharab believes it’s not one that will work in the long run.
“Outsourcing enhances productivity and transfer skills. However, it is still a short-term solution. Laying off employees should stop in the Middle East,” he added.