The Changing Business Landscape in Iran: Establishing Outsourcing Best Practices

Abstract

During an evolutionary period for Iran the aim of this paper is to identify a set of success factors, to inform enterprises who are now able to engage in the practice of outsourcing after the recent removal of long-standing US and UN sanctions, and contribute towards the formulation of a set of guidelines to assist these organisations and help deepen the understanding of recent economic developments in the Middle East. Primary research data was collected using a selfadministered survey which required senior/executive managers from enterprises in Tehran to assess a set of outsourcing factors established by academic literature. The most important factors for achieving outsourcing success in Iran were found to be having a clear strategic vision and plan, understanding the intended use of outsourcing, and understanding how outsourcing aligns with organizational goals and objectives. The primary driver for adopting outsourcing is access to operational expertise and the sectors experiencing the greatest level of outsourcing success were the construction and IT industries. With little literature available on outsourcing in Iran this research addresses a clear gap in the current body of knowledge and contributes toward a deeper understanding of potential supply chain opportunities in this unique region. The findings will assist academic researchers, and contribute towards policy formation, and there are clear implications for Iranian enterprises who might be considering adopting outsourcing now that barriers permitting them from doing so have been removed.

Outsourcing Best Practice - The Case of Large Construction Firms in Iran

“…Per Tabbasi and Baker (2010), the construction industry occupies more than eleven per cent of the Iranian working population. After the elimination of United States and United Nation sanctions on Iran, effective management and outsourcing practices have become vital to all firms and companies in Iran (Akbari & Hopkins, 2016), including construction firms. Construction firms were identified as the most successful in outsourcing process by Akbari and Hopkins (2016).…”

Drivers of Outsourcing and Selection Criteria of 3rd Party Logistics Service Providers

“…Some similar researches have previously conducted in USA, Europe, India, Iran and many other countries (Hwang, Chen & Lin, 2016;Akbari & Hopkins, 2016;Lieb & Randall, 1996;Sheffi, 1990;Sahay & Mohan, 2006;Sohail & Sohal, 2003) but 3 rd party logistics has not yet explored in the Pakistani context. Even the developing countries are getting benefit from outsourcing which enhances their customer's satisfaction (Akbari & Hopkins, 2016).…”

“…Organizations initially identify the need for the outsourcing and then they develop the criteria for the selection of 3 rd party logistics service providers (Akbari & Hopkins, 2016;Yang, 2014). Therefore, this study have made following two themes: Khan et …”

“…It will strengthen not only the public but also the private sector of Pakistan (Irshad et al, 2015). Most importantly, UN Security Council lifted the sanctions imposed on Iran in January 2016 and now they can trade with the international bodies (Akbari & Hopkins, 2016) which can enhance the business opportunities between Iran and Pakistan. Therefore, the business of 3PL will also be strengthen and it would be helpful to find out the reasons of outsourcing third-party logistics service providers.…”

“…Even the developing countries are getting benefit from outsourcing which enhances their customer's satisfaction (Akbari & Hopkins, 2016). Pakistani environment is totally different as it is completely uncertain, unambiguous and complex (Gulzar & Henry, 2005) which makes it necessary studying the 3PL in Pakistan.…”