Outsourcing
and off shoring have become common in United Arab Emirates. As the UAE is “the
second largest outsourcing market in the region” because of its improved resources
and literacy rates (Sourcingline 1). The UAE is “ideal for establishing outsourcing
operations” due to its close proximity to Europe (Sourcingline 1). The UAE is
home to numerous outsourcing and off shoring companies which includes
financing, IT, engineering, research and development, accounting, and payroll
processing as well. Some specific companies that operate in the UAE include
Emirates Airlines, AXA Insurance, and Nokia Siemens Networks. The UAE hit a
major economic crisis around 2011, which led them to issue a $10 billion loan
that could help get them back to their place in the world, however instead Emiratis
(the people of UAE), have actually been more interested in finding jobs through
companies who off shore. For example a software engineer with about one to four
years of experience is able to earn $25,000 compared to U.S. software engineers
who receive a median of $73,100 with at least a master’s in the field. However,
in the case of UAE, “most US companies move their job functions overseas due to
a shortage of skilled domestic talent—not cost cutting” (Mesbah 1). The software sector of the United States has
the highest recorded ratios of being offshore to skilled domestic employees. As
the UAE has gone from a economic crisis to one of the fat emerging key destinations
for off shoring “ranking second only to Egypt in the Middle East, and 15 globally”
it not only increases the interest in the UAE for companies but it also allows Emiratis
to develop the skills required to work such jobs as these companies look for
(Mesbah 1). One of the most favored sites by outsourcing companies is the three
million square feet that the Dubai Outsourcing Zone (DOZ) holds in the UAE. The
DOZ is not only responsible for providing jobs for the skilled individuals in
UAE, but it also allows companies to offshore and outsource without any
problems, and gives them the advantage of receiving the work that they expect
from its employees, but at lower costs. The DOZ not only allows companies to
register financial services but also, “the Emirates make it very simple and
highly attractive for Offshore Companies to operate a variety of activities”
(UAEOffshore 1). The UAE has become such a popular spot for off shoring, not
only for the cost, but for the skilled workers. As the UAE becomes more attractive for
offshore companies to operate their business, the UAE not only is given the opportunity
to show the skills that businesses believe the United States is not capable of.
Works Cited
"Sourcingline: United Arab Emirates." Outsourcing to. N.p., 2012. Web. 27 Feb. 2013. <http://www.sourcingline.com/outsourcing-location/united-arab-emirates>.
Mesbah, Rana. "Offshoring Driven by Skills Shortage Not
Cost-cutting, Duke Study Finds."AMEinfo.com. N.p., 22 Mar.
2011. Web. 28 Feb. 2013. <http://www.ameinfo.com/259942.html>.
"UAE Offshore Company Find Information and Resources for
Establishing Your Offshore Company
in UAE & RAK." UAE Offshore Company. N.p., 18 Oct.
2009. Web. 27 Feb. 2013.
<http://www.uaeoffshorecompany.com/>.
Samiha! I love this post! I think it was really interesting to hear about offshoring and outsourcing in the Middle East, especially as in this country we have a tendency to assume that all offshoring is in Southeast Asia or South America. You provided a lot of really interesting information, and you did a great job of backing up your work with quotes. However, I think your thesis got a little lost, so I think if you tie together the information a little more into solidified points, it will have a positive impact on the piece as a whole. I still really liked all the information you provided. Great job!!
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