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The Middle East presents some unique organizational challenges, not least the fact that manpower makes up a whopping 70-80% of operational costs. On top of that, it’s difficult apply the right costing techniques based on unit price, as the components of unit price are not readily available, explains Shamma Al Rahmah, Manager of Planning & Customer Management at Emirates National Oil Company’s (ENOC) Shared Services Center, and one of the speakers at Shared Services & Outsourcing Middle East.
Emirates National Oil Company implemented a shared services model for five different services relatively recently, with the objective of achieving economies of scale and monitoring major transactional expenditures. Throughout the implementation, the biggest challenge was to gain acceptance from department heads and execute the SLA, says Shamma. But implementing Users Councils and a Shared Services Executive Committee helped overcome early challenges and supported customers' ‘engagement.’ Hear Shamma discuss the difference a new billing system has made, now providing ENOC’s business units with transparency over their expenditures and helping to identify cost-drivers – all-important for the oil and gas industry.
Shamma also explains why she would tackle costs differently if she could do things over again: instead of basing costs on manpower, she’d base them on time and volume, therefore differentiating between clients while at the same time better understanding individual trends in service usage.