Includes CD

Thesis (DBA) - CYPRUS INTERNATIONAL UNIVERSITY INSTITUTE OF GRADUATE STUDIES AND RESEARCH DOCTORATE OF BUSINESS ADMINISTRATION

Includes references p. 174-187

ABSTRACT
When there are some observations that an activity is not functioning well, whether it was
core or not, a comprehensive evaluation is required in order to translate these observations
into real figures and indications. Based on these figures and indications, a successful
decision might be taken accordingly. The aim of the thesis is to conduct a full evaluation
of the chances of outsourcing the activity of oil transportation of Libya Oil Company in
an aggressive working environment. This includes cost- benefit analysis, perceptions of
the employees and contractors, laying of strategies, associated risks, as well as managing
many contractors simultaneously. Many different methodologies have been followed for
each point the thesis: For the cost, archival methodology was followed, questionnaire and
face-to-face interviews were conducted with the targeted employees and contractors.
Ranking methodology was carried out for laying off strategies and risks alike in which 12
people in charge participated. For managing many contractors simultaneously, archival
and direct observation have been conducted. It cost Libya Oil Company, for some months,
about 4 times when the activity was managed internally compared with the cost of
outsourcing the activity to contractors. The results indicated that about 70% of the targeted
employees believe that outsourcing would negatively affect their professions and
individuals alike as they are satisfied with their current payment with Libya Oil Company.
Contractors completely refused transferring employees to them, and at the same time, they
have the capabilities to take over the whole activity of oil transportation of Libya Oil
Company. People in charge have ranked laying off strategies and risks associated with
outsourcing differently. A new oil distributing model has been constructed in order to
manage many contractors fairly and simultaneously. Executing the project of outsourcing
the activity of oil transportation, in this current aggressive working environment, seems
to be difficult if not impossible unless the targeted employees are layed out excluding
transferring them to contractors.
Keyword: Outsourcing, Cost of outsourcing, Risks of outsourcing, Laying off strategies,
Employess perceptions and satisfaction, Contractors’ perceptions