Project Management; summary document that focuses on the cost savings
Order Description
What are the Cost Savings when a company outsources?
(Due Week 7)
Background:
In this case study, please choose from one of the areas in an organization that may be outsourced and prepare a cost savings report.
• Finance and Accounting
• Investment and Asset Management
• Human Resources
• Procurement
• Logistics
• Real estate management
• Miscellaneous (energy services, customer service, mailroom, food processing)
Your Assignment:
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:
o Establish the preliminary performance targets / level of service that will be required from the selected vendors;
o Establish the type of contract that you will use for each contract (i.e., fixed, cost-plus, reimbursable, unit);
o 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?];
o 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
o 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!
Submittal Format
Case Study 3 should be prepared in MS Word format. Any resources used beyond the ebook need to be cited in your document–including links to relevant websites. Your document shall be written as an executive summary or bulleted list/tables clearly identifying your purpose, relevant data, decision-making/thought process, and conclusion. Your document will be your “go-to” financial plan for your outsourcing process. You need to quickly and succinctly understand the steps that you’ll undertake for contracting. This means having minimal paragraph-style text, and instead, introducing a variety of tables, graphs, and charts.
While this report should be fashioned as an executive summary, it does encompass the entire contracting process. As such, it shall be between 5 and 8 single-sided pages in length, using 10-point Times New Roman font, and 1.5-inch line spacing. The page requirements do NOT include any cover sheets that you may include with your report.
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