Advantages and Disadvantages of Maintenance Outsourcing in Manufacturing Companies: With Special References to Jubail Industrial City – KSA

Abstract

The research study presents, discusses and offers understanding on outsourcing, the most important benefits (advantages) and potential risks (disadvantages) associated with-in. It emphasizes the outsourcing specialized maintenance activities and its role in business success.

In this research, a hypothesis were develop whether the benefits of outsourcing maintenance in manufacturing companies are more than expected risk associated on this. Overall result of the survey ruled out that outsourcing provides more advantage than disadvantage in a manufacturing industry.

Manufacturing industry is the major contributor to the Kingdom's economy wherein Jubail is the largest industrial city in the Middle East. This is also the home of Middle East's largest and world's fourth largest petrochemical company. Outsourcing maintenance has been one of the pillars of manufacturing industries in Jubail as become apparent thru the outcome of the study. The research has paved a way for everyone who are engaged in outsourcing maintenance in providing them wise decision making.

Managers need to contemplate maintenance outsourcing if it provides potential advantage to their company. Contractor qualification classifications established on the set conditions done by the government is recommended. More studies regarding maintenance outsourcing is needed in the academics as well as in advance forums.

The author has successfully developed statistical survey wherein the respondents are professionals, engineers and management of prestigious manufacturing industries in Jubail, It is an impressive feedback that majority of manufacturing industries most likely practice and recommend outsourcing for the maintenance. 84.6% of the overall respondents practice outsourcing in the manufacturing industries and 80.0 % of them is highly recommending outsourcing here in Jubail Industrial City. Likewise, the author recommended future expanded studies interrelated with outsourcing and maintenance.

Keywords: Outsourcing, Maintenance, Manufacturing Industries. Jubail Industrial City.