Title: Potential knowledge process outsourcing of Egyptian oil and gas engineering services industry

Authors: Hisham M. Abdelsalam; Mohamed Sadek; Sara Gamal

Addresses: Faculty of Computers and Information, Cairo University, 5 Ahemd Zewail St., Orman, Giza, 12613, Egypt ' Chicago Bridge & Iron (CB&I), Makram Ebeid St., Nasr City, Cairo, 11762, Egypt ' National Management Institute, Hassan Aflaton St., from Nozha St., Ard El-Golf – Nasr City – Cairo, 11796, Egypt

Abstract: We live today in a knowledge-based economy where information and its interpretation are the keys to coping with an ever-changing market conditions. However, for knowledge to be acquired efficiently, it needs using the least resources with the lowest costs incurred and in the least time possible. This is when entities came into the realisation of outsourcing where companies outsource sophisticated functions and operations to a third party to be able to acquire knowledge in the fastest and least costly way possible. Today, knowledge process outsourcing (KPO) is a fast growing market and as the business process outsourcing (BPO) is being introduced to Egypt, the next step for Egypt is to make the transition to KPO. However, Egypt's potential of being a KPO hub where a whole industry can be formed, enhancing economic performance and creating jobs is under-researched. This research aims to determine the main factors that would affect Egypt's eligibility of being a KPO vendor in the oil and gas engineering services. A survey was administered on a sample of engineers working in major oil and gas companies in Egypt. Among five tested factors, results showed that the number one factor affecting Egypt's KPO potential in this sector is its business environment followed by the cost advantages.

Keywords: knowledge process outsourcing; KPO; business process outsourcing; BPO; engineering services; cost advantage; pool of talented personnel; quality of infrastructure; business environment; risks; potential; Egypt; oil and gas industry; knowledge-based economy.

DOI: 10.1504/IJKBD.2013.058525

International Journal of Knowledge-Based Development, 2013 Vol.4 No.4, pp.338 - 362

Received: 03 Jun 2013
Accepted: 05 Jun 2013
Published online: 31 Mar 2014 *

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