Presentationa Service Outsourcing Model at the National Iranian Gas Company
Subject Areas : Industrial ManagementSomayeh Heidari gojani 1 , Mousa Rezvani Chamanzamin 2 * , نسرین خدابخشی 3 , Pouran Sourati 4
1 - PhD Student in Management, Islamic Azad University, Astara Branch, Astara, Iran
2 - Assistant Professor in Management Department, Islamic Azad University, Astara Branch, Astara, Iran
3 - دانشجوی دکتری گروه مدیریت، دانشکده علوم انسانی، واحد ساوه، دانشگاه آزاد اسلامی، ساوه، ایران
4 - Assistant Professor in Management Department, Islamic Azad University, Astara Branch, Astara, Iran
Keywords: Outsourcing, Services, Policy-making, Empowerment,
Abstract :
Presenting a Service Outsourcing Model for the National Iranian Gas Company
Extended Abstract
Introduction
In the contemporary landscape defined by globalization and intense organizational competition, the strategic delegation of non-core activities has become a critical managerial imperative. Outsourcing, as a key strategy, offers a pathway for organizations to enhance productivity, reduce operational costs, and harness external expertise, thereby allowing a sharper focus on core competencies. This shift transforms outsourcing from a simple financial mechanism into a vital tool for improving service quality and building organizational resilience. Within this global context, the National Iranian Gas Company, as a pivotal state-owned service entity in Iran’s strategic energy sector, faces unique pressures. Despite engaging in extensive outsourcing over the years, particularly in customer service domains, the company’s experience has been marred by significant challenges. These include failures in contractor selection, inadequate evaluation processes, and issues of non-compliance, which have collectively led to inefficiencies and suboptimal outcomes. Compounded by macroeconomic strains, international sanctions, and inherent bureaucratic structures, these challenges highlight a pressing need for a coherent, context-specific framework. This study therefore seeks to address a fundamental question: what constitutes an effective and holistic model for service outsourcing within the complex ecosystem of the National Iranian Gas Company, and what are the principal dimensions that shape this process?
Methodology
To answer this question, the research employed a mixed-methods exploratory-sequential design, integrating qualitative and quantitative approaches to first uncover and then statistically validate the components of an outsourcing model. The qualitative phase aimed to identify the influencing factors through in-depth, semi-structured interviews with fourteen purposively selected experts, including academics, senior NIGC managers, specialists, and active contractors. Data collection continued until theoretical saturation was reached. The interview transcripts were analyzed using thematic analysis, following the established six-step framework of Braun and Clarke, facilitated by MAXQDA software. This analytical process moved from initial code generation to the refinement and definition of overarching themes, ensuring rigor through established trustworthiness criteria and an inter-coder reliability score of eighty-nine percent. Building on these qualitative insights, the quantitative phase focused on model validation. A researcher-made questionnaire, derived directly from the qualitative findings and comprising forty-three items, was distributed to a sample of four hundred and thirty managers and experts within the company. The analysis of four hundred and fifteen returned questionnaires utilized Structural Equation Modeling with a Partial Least Squares approach via SmartPLS software, examining factor loadings, path significance, and overall model fit to substantiate the proposed relationships.
Results
The analysis of the qualitative data revealed a rich tapestry of concepts, ultimately distilled into two hundred and ten primary ideas, forty-three sub-themes, and nineteen core themes. These elements coalesced into an integrated, three-part model encompassing the foundational conditions, the required strategic actions, and the anticipated consequences of outsourcing. The contextual factors forming the backdrop for outsourcing decisions were found to be deeply rooted in economic pressures to cut costs and boost productivity, managerial needs to refocus on core gas transmission and distribution activities, the necessity for organizational flexibility in a dynamic technological environment, the directives of national macro-policies promoting private sector participation, and the continuous demand for updated technical expertise and quality service enhancement. In response to these conditions, the model identifies a suite of essential strategies. Successful implementation hinges on deliberate policy-making to create supportive regulations, proactive risk management to mitigate financial and operational vulnerabilities, and concerted efforts to empower both internal staff and external private sector partners. Furthermore, it requires the strengthening of monitoring systems through key performance indicators and smart technology, comprehensive programs to enhance organizational awareness and shift cultural attitudes, and the alignment of all outsourcing activities within a clear strategic plan. Underpinning these strategies must be a transformation in process management and leadership style, moving towards more collaborative, efficient, and data-driven practices. The potential outcomes of executing this model effectively are projected to be multidimensional, leading not only to tangible cost reduction and increased productivity but also to improved organizational performance, overall development through enhanced creativity and interaction, and the solidification of a sustainable competitive advantage. The quantitative validation confirmed the structural soundness and significance of this holistic model. All measured factor loadings exceeded the accepted threshold, the path coefficients were statistically significant, and the overall Goodness-of-Fit index indicated a strong model fit.
Discussion
This statistical endorsement affirms that the relationships proposed between the contextual drivers, strategic enablers, and desired outcomes are robust and generalizable within the research context. The discussion of these findings posits that for an entity like the National Iranian Gas Company, outsourcing must be reconceptualized from a fragmented operational tactic into a deliberate, organization-wide strategic transformation. Its success is not guaranteed by the mere act of delegation but is contingent upon a synergistic alignment of all model components. This requires embedding outsourcing within the company’s long-term strategic roadmap, governed by robust policies and intelligent risk frameworks. Crucially, it demands parallel investments in human and organizational development—empowering employees, shifting managerial mindsets from control to partnership, and safeguarding institutional knowledge—to mitigate resistance and ensure sustainable implementation. Ultimately, the study presents a validated, context-sensitive framework that can guide the National Iranian Gas Company in evolving its outsourcing practice from a source of challenge to a strategic lever for enhancing efficiency, focus, and resilience in a complex and demanding operating environment.
Keywords: Outsourcing, Services, Policy-making, Empowerment.
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