Prepare an executive summary document that focuses on the cost savings of the ou
ID: 2640201 • Letter: P
Question
Prepare an executive summary document that focuses on the cost savings of the outsourcing / contracting process for the business process that you decide to outsource. Your analysis must include the steps below.
You need to JUSTIFY your decision for the business process outsourced (e.g., accounting, editorial, photography, publishing, distribution, printing, layout, advertising, editing, articles, etc.); and
For the service that you intend to outsource:
Establish the preliminary performance targets / level of service that will be required from the selected vendors;
Establish the type of contract that you will use for each contract (i.e., fixed, cost-plus, reimbursable, unit);
Determine the evaluation criteria you will use to select the preferred vendor(s) (e.g., low price, best value, etc.). [Are there different evaluation criteria for different business units? Why?];
Identify the number of vendors that you will select to provide the services to be outsourced (i.e., one vendor for all services versus individual vendors with specific expertise in each of the services to be outsourced); and
Construct a timeline that summarizes the bid activities and time duration for each contracting process (i.e., plan purchases and acquisition through select sellers).
ALL FROM A FINANCIAL PERSPECTIVE!
Explanation / Answer
the ultimate goal of any business firm is maximizing the shareholders wealth. to achieve the goal, the firm can follow any strategy which is legally and ethically acceptable.
outsourcing is a best source to minimize cost and maximize profits to any firm, take an example of technology gaint of Microsoft, it is having 3 outsourcing units in India and it is planning to establish two more units in India.
here our task is outsourcing accounting services from India, becase the availability of skilled manpower is high and cost of manpower is very low when compare to US. So, our target is to outsource finanical accounting serveice from India.
there are many firms started offering the services in the same area like Bank of America. Genpact, Deloitte, Factshet, JP Morgan Chase and many other.