Offshore Labour Industry Report by Regional Category Spend, Price Analysis, Key Demand, Price Indicators, and Best Buying Practices

The global offshore labour market reached a value of about USD 69.3 billion in 2021. The industry is projected to grow at a CAGR of around 4% in the forecast period of 2022-2027 to reach a value of USD 87.6 billion by 2027.

The offshore labour industry report comprehensively analyses the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. At present, it is witnessed that various models of employing labour are being implemented for every spend classification by oil companies nevertheless in the years to come, big firms would choose a hybrid or blended model, owing to the high-level focus on building a holistic methodology for offshore labour role that can either be for temporary or permanent roles. The Asia Pacific is the highest category spender by region that is driving the demand for the offshore labour industry.

Industry Definition and Segmentation

Several organisations use offshore labour which gives them an opportunity to save their operating costs and maximise their revenues. Offshore labour comprises labours building up their base overseas or using a third-party dealer in a distinct country to execute services or work in the manufacturing business for an organisation within a different country such as the United States. The global offshore labour industry report comprises segments based on regions (Europe, North America, Asia Pacific, Latin America, and the Middle East and Africa).

The Asia Pacific Region is Driving the Growth of the Industry

Asia Pacific region has the maximum demand for global offshore labour occupying 35% of the total worldwide demand followed by the Middle East and Europe. The demand for offshore labour in the Asia Pacific is notably propelled by Exploration and Production (E&P) activities. Furthermore, an offshore well goes on to generate a relatively similar volume of crude for at least 10-15 years however an onshore well can range approximately 50%-60% of crude production in the initial year. Hence, this confirms a long-term demand for offshore labour in comparison to onshore. In addition, newly found or discovered deep-water resources and offshore wind projects are anticipated to drive the demand for global offshore labour and in turn, lead to the growth of the market.

One of the primary drivers for the development of the offshore labour industry is that it generally offers a lower cost for labour services. This factor is primarily beneficial for industries that may need a large number of labours to carry out their assignments, as decreasing overall labour expenditures can also result in reducing the cost of operations. Moreover, offshore labour assists a company’s size by expanding its number of employees and business services. In addition, organisations have access to additional and new types of specialist labour by using offshore labour and likewise, they are able to source a wide amount of talent and expertise from various countries.

Nevertheless, the market has to confront challenges from current low oil spending owing to the sluggish recuperation of crude oil prices, rigorous government policies, and health and safety procedures to be followed on offshore platforms that restricts the movement of labours on the board.

Best Procurement Practices

The global storefront design and installation services industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by storefront design and installation services providing and utilising regions across the globe, such as contract terms, engagement models, and buyer and supplier negotiation levers, among others.

Category Management Studies

An organisation shifts some sections of its business processes to a different country so that its services are completed, and it achieves certain advantages. Offshore labour can be employed by a company while continuing to be in full control of all daily operations by launching an industrial unit overseas or expanding a new location globally. Moreover, firms or organisations can select to utilise a third-party supplier overseas to save money on equipment, labour, and rent. There are two important types of offshore labour: production offshoring and services offshoring.

Access to Extensive Labour Pool is Anticipated to Further Drive the Offshore Labour Market

Normally the targeted locations for offshore labour outsourcing are preferably countries with enormously complex populations with fast-growing middle classes. The affluent markets such as IT and software development give a platform to these educated and skilled classes of labour to compete with others. As the manpower of competent and skilled IT experts in developed countries like the United States is not expanding rapidly, this kind of supply of supplementary offshore labour is enormously beneficial for the organisations. In addition, offshore labour outsourcing in IT companies is a widespread preference all through the United States.

The key zones in the industry are Europe, North America, Latin America, the Asia Pacific, and the Middle East, and Africa.

Key Industry Players Mentioned in the Offshore Labour Industry Report

• Oceanwide Offshore Services B.V
• NES Fircroft
• UTM Consultants Ltd.
• Airswift Transport, Inc
• UB Offshore Services Pvt. Ltd.

Market Landscape

Various employment methodologies and models are being implemented by companies specifically oil firms. Nevertheless, it has been projected that in future years, big companies would prefer employing hybrid or blended models that could either be temporary or permanent employment because of the rise in the focus on developing an all-around approach for offshore labour roles. The hybrid prototype approach will offer a specific point of contact for all groups of labour across upstream, downstream, and midstream. Moreover, the offshore labour master vendor model takes complete accountability for sourcing temporary and contract recruitment services. On the other hand, in the direct sourcing model vendor selects desired suppliers of offshore labours from a pre-vetted list.

Key Initiatives by Companies

• The software development services team of WhatsApp was outsourced even before it was launched in 2009. These offshore professionals managed its vital app development and upkeep whereas their in-house software developers focussed on customer-related responsibilities.
• Offshore outsourced professionals were hired by GitHub when they concluded that the United States-based specialists were too costly for the company to recruit as full-time employees.