Voice App is a midsize software company that specializes in voice recognition so
ID: 2709153 • Letter: V
Question
Voice App is a midsize software company that specializes in voice recognition software. Due to rising costs of maintaining IT technical support, your director is considering outsourcing your technical support services. Currently, your technical support service desk is staffed by 30 full-time and 15 part-time employees. Your director has asked you to prepare a recommendation report that includes the advantages and disadvantages of outsourcing and a cost/benefit analysis to determine if outsourcing will actually result in any significant savings for the company. For this assignment, prepare your preliminary list of the advantages and disadvantages of outsourcing for your company, including both long- and short-term consequences. Rank the advantages and disadvantages in descending order of importance. Then, in a 500-word paper, explain the research process you will undertake to complete your recommendation. Include all costs you must calculate and other data you must collect in order to make the most informed decision possible.
Explanation / Answer
Advantages:
Disadvantages:
Research Paper
Process:
Analyzing the areas which need improvement in terms of process and categorizing the same in accordance with their importance for the organization.
Assessing the need for outsourcing the activities and its financial and non-financial impact on the organization.
Costs will include –Service/Consultancy cost paid to the vendor, migration costs of current process and system, knowledge and technical know-how transfer cost, travelling cost, communication cost, initial training cost.
Savings will include, Financial cost savings i.e. savings in Employees salary, Working capital requirements for meeting the routine expenses such as rent, administration cost etc. compliance costs, cost of capital expenditure. Etc.
Detailed analysis of cost benefits of the outsourcing and its financial impact on the organization. Outsourcing may be preferred only if it offers a significant amount of financial benefit to the organization.
Detailed analysis of the technical expertise offered by the outsourcing vendor and the quality of work offered.
Detailed analysis of the impact on business of the organization
SWOT analysis of the Outsourcing for the organization.
Analysing the Backup Continuity Plan and Disaster recovery plan
Mitigation plan of data confidentiality risks involved in outsourcing.
Understanding the contractual obligations and costs involved in detail.
Detailed study of Government policies and impact of taxation on the organization due to outsourcing.
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