Outsourcing of personnel to Oil and Gas Companies Worldwide

by

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

ABSTRACT

The research is based on exploring the outsourcing strategy used by the Human Resource Management in Oil and Gas Industry. Outsourcing refers to the act of transferring work, responsibilities and decision rights to another entity. Outsourcing is normally conducted with an external party - i.e., external to the unit conducting the sourcing; hence, the word "out”. The role of the HR professional combines the driver of business transformation with the role of creating and sustaining a corporate culture of collaboration and excellence. This research explores the role played by human resource management in outsourcing personnel in the Oil and Gas industry. Through conducting interviews from HR managers for the industry, the researcher has tried to interpret the reason for outsourcing and advantages of outsourcing. The key findings for the research are that shortage of labour was one of the major reasons that contributed towards the use of HRO. This shortage was due to increasing demand of energy, increasing older workforce, perception of the industry. Furthermore, another finding of the study was the benefits of outsourcing HRM is that companies use outsourcing to reach objectives without investing time and finances in hiring internal experts. Lastly, the research finding included the techniques used by Oil and Gas industry. It was concluded from the research that outsourcing of human resource has significantly increased in Oil and Gas industry. Outsourcing is a complex business decision that entails more than a simple make- or-buy choice determined solely on minimizing costs. Outsourcing HR has grown from outsourcing a service to a vendor on a short term basis to a partnership with an outsourcing firm to include discrete services of high volume repetitive services to total HR outsourcing, leaving only HR executives in-house. Today's business environment is mostly focused on making the competitive edge, with an emphasis on profitability.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the Study1

Research Aim and Objectives2

Research Questions3

Oil and Gas Industry Profile3

CHAPTER 2: LITERATURE REVIEW5

Outsourcing5

Types of Outsourcing7

Current Trend of Outsourcing across the Globe8

Human Resources Role9

Human Resources Activities12

Human Resources Outsourcing Trends13

Outsourcing Drivers13

Human Resources Functions Being Outsourced14

HRO Service Buyer's Criteria to Select HRO Vendors16

The Decision to Outsource HR Functions or Tasks16

Human Resource Management in Oil and Gas Industry18

Human Resource Outsourcing19

Advantages of Outsourcing21

Drawbacks of Human Resource Outsourcing24

Summary26

CHAPTER 3: METHODOLOGY27

Research Methodology27

Research Questions28

Qualitative Method28

Rationale for a Qualitative Study29

Data Collection Method30

Literature Search30

Interviews31

Sampling32

Participants32

Data Analysis Technique32

Ethical Considerations33

Role of the Researcher34

Researcher Bias35

Informed Consent35

Quality and Verification36

Validity and Reliability37

Summary38

CHAPTER 4: DISCUSSION AND ANALYSIS39

Need of outsourcing of personnel in Oil and Gas Industry39

Substantial Increase in the Demand of Energy40

Older Workforce41

Industrial Perception42

Passing the Torch42

Availability ...