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B2B outsourcing in the Middle East

State of the market and how online B2B can help




                                       Narender Rayat
                                       Co-founding Partner
                                       www.idoyourjob.com
                                       Wednesday, September 29, 2010
Outsourcing - Why?
• Wikipedia.com defines outsourcing as the contracting
  out of a business function - commonly one previously
  performed in-house - to an external provider.

• With outsourcing, you can –

    Focus on your company’s core competencies.
    Free resources for your true business goals.
    Stop managing what you cannot do.
    Have numerous cost-advantages.
    Have lower infrastructure investments.
Top 10 reasons companies outsource

  55%                54%




                                       38%
                                                          36%



                                                                             25%

                                                                                             20%
                                                                                                              18%

                                                                                                                               12%            12%
                                                                                                                                                               10%




    Improve      Reduce and Free resources to Gain access to                 Resources not   Accelerate re-   Reduce time to   Share risks   Take advantage Function difficult
 company focus control operating manage core   world class                      available     engineering        market                        of offshore  to manage or out
                     costs        business     capabilities                    internally      benefits                                        capabilities     of control



Note: Numbers do not add up to 100% as respondents selected more than one answer
State of the market
• Recent turmoil in the financial services industry has
  intensified the search for new suppliers who are more
  cost effective and reliable

• Long term expectation : Outsourcing in this industry will
  grow as :
   –    buyers seek to reduce operating costs
   –   avoid investments into new systems and capabilities
   –   shift focus to more strategic activities, and
   –   leverage their growing supply of skilled global resources
Statistics
• Global shift in outsourcing to emerging Markets:
  MENA emerging as key outsourcing centre

  Countries such as Morocco, Egypt, Jordan, Tunisia
  and UAE considered most desirable in Middle East
  due to educated workforce

• Outsourcing spending in the Gulf - exceeded half a
  billion dollars in 2009 , up from $414 million of 2008
  with IT topping the list.
Statistics
             Global Outsourcing Statistics


                22%

      9%
                                             IT
                                             Human Resources
11%                                 27%      Sales & Marketing
                                             Finance
                                             Administrative
       15%                                   Others
                    16%
How online B2B can help
•   Online outsourcing is a paradigm shift: idoyourjob.com aims to bridge a
    company’s out-house requirements with the company that provides them.
    Following a bidding system where clients post their projects and service providers
    bid on them.

•   Client Perspective:
     - Supplier search - Cold calling, prospecting, leads vs. freedom to choose.
     - Access to talents undefined by current demographics.
     - Access to qualified and peer recommended supplier database.

•   Service Provider / Supplier Perspective:
     - Opportunity to expand business horizons.
     - Playing field is leveled.
     - Access to qualified and peer recommended client database.
Industries covered
•   Advertising, Marketing & PR
•   Business Consulting
•   Events Management
•   Finance, Audit & Accounting
•   Human Resources
•   Interior Design
•   Shipping, Transportation & Logistics
•   Training and Development
•   Travel services
•   Advocates & Legal
•   Contracting & Engineering
•   Facilities Management
•   Hospitality
•   Information Technology & Telecom
•   Printing
•   Services Rental
•   Translation, Writing, & Documentation
Value proposition of online B2B
• The end goal of online B2B is two fold:
  Have your own procurement department online.
  Acquire business leads as a service provider.
Thank you!

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B2B outsourcing in the Middle East

  • 1. B2B outsourcing in the Middle East State of the market and how online B2B can help Narender Rayat Co-founding Partner www.idoyourjob.com Wednesday, September 29, 2010
  • 2. Outsourcing - Why? • Wikipedia.com defines outsourcing as the contracting out of a business function - commonly one previously performed in-house - to an external provider. • With outsourcing, you can –  Focus on your company’s core competencies.  Free resources for your true business goals.  Stop managing what you cannot do.  Have numerous cost-advantages.  Have lower infrastructure investments.
  • 3. Top 10 reasons companies outsource 55% 54% 38% 36% 25% 20% 18% 12% 12% 10% Improve Reduce and Free resources to Gain access to Resources not Accelerate re- Reduce time to Share risks Take advantage Function difficult company focus control operating manage core world class available engineering market of offshore to manage or out costs business capabilities internally benefits capabilities of control Note: Numbers do not add up to 100% as respondents selected more than one answer
  • 4. State of the market • Recent turmoil in the financial services industry has intensified the search for new suppliers who are more cost effective and reliable • Long term expectation : Outsourcing in this industry will grow as : – buyers seek to reduce operating costs – avoid investments into new systems and capabilities – shift focus to more strategic activities, and – leverage their growing supply of skilled global resources
  • 5. Statistics • Global shift in outsourcing to emerging Markets: MENA emerging as key outsourcing centre Countries such as Morocco, Egypt, Jordan, Tunisia and UAE considered most desirable in Middle East due to educated workforce • Outsourcing spending in the Gulf - exceeded half a billion dollars in 2009 , up from $414 million of 2008 with IT topping the list.
  • 6. Statistics Global Outsourcing Statistics 22% 9% IT Human Resources 11% 27% Sales & Marketing Finance Administrative 15% Others 16%
  • 7. How online B2B can help • Online outsourcing is a paradigm shift: idoyourjob.com aims to bridge a company’s out-house requirements with the company that provides them. Following a bidding system where clients post their projects and service providers bid on them. • Client Perspective: - Supplier search - Cold calling, prospecting, leads vs. freedom to choose. - Access to talents undefined by current demographics. - Access to qualified and peer recommended supplier database. • Service Provider / Supplier Perspective: - Opportunity to expand business horizons. - Playing field is leveled. - Access to qualified and peer recommended client database.
  • 8. Industries covered • Advertising, Marketing & PR • Business Consulting • Events Management • Finance, Audit & Accounting • Human Resources • Interior Design • Shipping, Transportation & Logistics • Training and Development • Travel services • Advocates & Legal • Contracting & Engineering • Facilities Management • Hospitality • Information Technology & Telecom • Printing • Services Rental • Translation, Writing, & Documentation
  • 9. Value proposition of online B2B • The end goal of online B2B is two fold: Have your own procurement department online. Acquire business leads as a service provider.