Niyamath Parveez

Just when people thought the global economy was getting back on track, it appears to be at great risk again. In the past decade or so, Dubai and the surrounding regions has been viewed as one of the most prosperous places in the world and where the money men were choosing to base themselves. The dreams of building the tallest buildings was supposed to show the entire world that the Gulf region was the centre of the new financial world but things have went wrong since the heady days. The economic crisis has affected everyone in some shape or form but for those who were reliant on credit or had money tied up in a number of areas, it has all turned very sour very quickly indeed.

The economic downturn in the Gulf region has forced all companies and firms to re-examine their operating costs and all of the wage implications throughout their company. No doubt they look to India and see the economic progress that has been made in that nation through utilising outsourcing. Outsourcing has greatly changed the way that the business world operates and has provided firms with a better chance of lowering their labor costs. Considering the economic impact that labor cost has on a firm, being able to significantly reduce these costs has to be a major consideration. In fact, for some firms, it has become their top priority, causing it to be the major concern for everyone within the company, from top to bottom. Everyone has the potential to be affected by outsourcing decisions, which means that everyone needs to have an awareness of them. Even in the once mighty Dubai, outsourcing hangs over firms like a dark spectre.

Ironically, one of the things that may prevent some companies and firms from outsourcing in the manner they would like to is a lack of money. Yes, even though outsourcing is intended to bring economic benefit and aid a firm in their financial operations, it is not something that is free to set up. There are a number of costs related to the setting up of outsourcing deals that are non negotiable. Firms need to undertake a proper level of research to ensure that the firm they are going to work in conjunction with can be trusted. It would be very bad business practice to set up a partnership or supply chain relationship with a firm that hadn’t been properly examined. The exact same can be said about outsourcing deals. A firm that fails to properly investigate the background and history of any potential partners is paving the way for a bad working relationship to develop.

This means that some firms will have to soldier on in the meantime but if a company is able to look to the long term, outsourcing is a tremendous solution. There is a great deal of hope that the problems in Dubai and the surrounding regions are temporary and that many firms will bounce back. Setting up outsourcing contracts may provide the temporary release to allow firms to reorganise themselves into better shape, allowing for long term growth and sustainability.