Subsea Drilling Services Market Procurement Intelligence Report

Business practices within Subsea Drilling Services market are heavily influenced by changing trends across the category as well as within the broader Construction Service Providers market. To attract investment and drive long-term value, suppliers are building unique business models and implementing corporate social responsibility (CSR) initiatives and stakeholder engagement programs. Such strategic initiatives are pivotal to acquire a social license to operate, generate consumer awareness, and have easy access to input commodities.

Periods of macroeconomic uncertainty and increasing stringency of immigration laws are key contributors to the workforce shortage in the market. Domestic workers in developed countries often choose to pursue higher education and less cyclical employment opportunities while foreign workers return to their home countries due to tough immigration laws and economic conditions. Consequently, suppliers have had to increase labor wages to attract skilled and unskilled labor, which has increased their costs and forced them to increase their pricing.

The growing need for smarter and resilient construction has encouraged a rapid implementation of advanced BIM solutions. The integration of 4D BIM and geographical information system (GIS) is helping in improving construction productivity, construction supply chain management, material supplier selection, estimation of deliveries, and overall coordination between construction companies and material suppliers.

As a result, category managers need to closely monitor the Subsea Drilling Services procurement trends and identify changes required in their procurement environment for the category.

The report discusses in detail the best practices that have served well the category managers responsible for Subsea Drilling Services procurement.

For example, Service providers may outsource certain aspects of the project if they lack the required expertise or to expedite the project progress. If the subcontractor is not covered by a reliable liability insurance or does not abide by the same terms and conditions that were laid down for the main contractors, then it can hinder the main contractor's ability to perform its services. It may also entangle the buyers in legal complications and negative publicity.

Establishing strategic partnerships with suppliers allow category managers to enhance management and planning vision. By adopting a strategic engagement approach, buyers can optimize their category spend by streamlining the category management process. For instance, a risk/reward-sharing approach for construction management providers helps buyers to transfer ownership of projects to service providers.

Buyers should engage with service providers that offer a wide portfolio and can act as a one-stop solution provider for multifaceted requirements of projects. This enables buyers to save significant costs and increases their spend visibility.

Subsea Drilling Services procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Subsea Drilling Services procurement. Some examples include: