BHP Billiton Outsourcing: Canada and Pakistan Report

Exclusively available on Available only on IvyPanda® Made by Human No AI

Executive summary

The mining industry in Australia has gone through tremendous developments despite its slowdown in 2009 as a result of the global economic recession. It is now characterized by global leading firms such as BHP Biliton. In particular, BHP is the world’s largest diversified natural resource company with over 100 locations in 25 countries.

This success is attributed to the corporate strategy which focuses on broadening the firm’s business and products as the opportunities arise. To achieve this strategy, BHP has engaged in outsourcing activities which facilitate functions across its geographical segments as well as increasing its technological capabilities. The motivation to outsource infrastructure in the Latin America was growth opportunities, though the firm has continually faced social, environmental and economic challenges.

Therefore, it is important for the top management to include local activists in the decision making process. Similar challenges face the firm in Canada, hence the need to take proactive measure when outsourcing. For Pakistan, the exploitation of the many growth opportunities can be achieved by enhancing skills and expertise of the workers. Information technology outsourcing requires the firm to prepare the stakeholders for the change.

Recommendation for Canada

Canada is a country that promises future prosperity of BHP due to its large diamond reserves and the enormous investment the firm has put on its mining activities. However, this prosperity is influenced by a number of factors that stretch out beyond the operational strategies, thus calling for more proactive measures. The best solution for the issues that hinder the success of the company in the country is to make the outsourcing strategy to be more realistic.

By outsourcing infrastructure from Canadian firms, the company could make a better use of the investment. This is because, Canadian firms are in a better position to understand and respond to the social, environmental and economic challenges. De Cieri, Fenwick and Hutchings (2005) confirm that the major reason of outsourcing is to overcome drawbacks associated with diversity in the international market arena.

Recommendation for Pakistan

The Pakistan market carries great investment opportunities for mining firms with global reach and reputation like BHP. The vast oil reserves and minerals only suggest a part of the benefits the firm would reap from the country. Nonetheless, BHP outsourcing should focus on human resources in order to have a profitable investment in the country. It is explained that the major drawbacks faced by the mining companies in Pakistan are lack of skilled labor and technology.

BHP can learn from the Chinese firms with a long history of success in the country that outsourcing human resources is paramount. Indeed, enhancing skills and expertise is the core strategy rooted in outsourcing (Siddiqi, Masud & Sabri, 2006). In addition to responding to RekoDig failure, this recommendation also aligns with the government endeavor to make Pakistan an industrious nation.

IT recommendation

While the optimization model developed by ADA was adopted by BHP to allow web-enabled planning of its seven mines, CoPs were adopted to respond to the diversity issues associated with the company. These IT functions are apparently important considering the size of the firm and the scope of its functions, yet they have shown slight consequences. It seems that the outsourcing of IT is a strange phenomenon to the BHP community.

Therefore, it will be very strategic for the company to allow IT knowledge to perforate throughout the organization as a way of increasing its acceptance. As Frederiksen and Glaser (1990, p.326) observe, training can be an effective method of enhancing technological knowhow of the stakeholders.

References

De Cieri, H, Fenwick, M & Hutchings, K 2005, ‘The challenge of international human resource management: balancing duality of strategy and practice.’ International Journal of Human resource Management, vol.16 no.4, pp.584-598.

Frederiksen, N & Glaser, R 1990, Diagnostic Monitoring of Skill and Knowledge Acquisition. Routledge, London.

Siddiqi, S, Masud, T & Sabri, B 2006, Contracting but not without caution: experience with outsourcing of health services in countries of the Eastern Mediterranean region, <>.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2019, May 16). BHP Billiton Outsourcing: Canada and Pakistan. https://ivypanda.com/essays/bhp-outsourcing-report/

Work Cited

"BHP Billiton Outsourcing: Canada and Pakistan." IvyPanda, 16 May 2019, ivypanda.com/essays/bhp-outsourcing-report/.

References

IvyPanda. (2019) 'BHP Billiton Outsourcing: Canada and Pakistan'. 16 May.

References

IvyPanda. 2019. "BHP Billiton Outsourcing: Canada and Pakistan." May 16, 2019. https://ivypanda.com/essays/bhp-outsourcing-report/.

1. IvyPanda. "BHP Billiton Outsourcing: Canada and Pakistan." May 16, 2019. https://ivypanda.com/essays/bhp-outsourcing-report/.


Bibliography


IvyPanda. "BHP Billiton Outsourcing: Canada and Pakistan." May 16, 2019. https://ivypanda.com/essays/bhp-outsourcing-report/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1