OPER1160 - Feasibility Analysis of Outsourcing RCS Support Desk

This report assesses the feasibility of Roell Customer Services (RCS) outsourcing its support desk services to a company in Bangalore, India. It includes a total cost analysis comparing current in-sourcing costs with the proposed outsourcing costs, evaluating personnel, equipment, and variable expenses. The report examines the feasibility of the proposal based on five key performance dimensions: cost, customer satisfaction, quality of service, environmental impact, and efficiency. A weighted-matrix model is used to score and weigh these dimensions, leading to a final recommendation. The report also benchmarks the support desk by considering average response time, number of customers handled, and customer feedback ratings. Ultimately, the analysis informs a strategic decision on whether RCS should proceed with the outsourcing proposal, considering both financial and qualitative factors.

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RCS outsourcing
Report on feasibility of outsourcing

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RCS outsourcing
Executive summary
First of all the total, the report is briefly described in the introduction section. Then, Cost analysis of the
outsourcing as well as in-sourcing is provided after which the feasibility of the proposal is ascertained.
The 5 dimensions are described on the basis of which the new proposal will be evaluated. Each
dimension is given the different score; based upon which weighted-matrix model is made. Then, the
final recommendation is provided. In the end, the online desk support system is benchmarked which will
be helpful in assessing the viability of the proposal from the quantitative point of view.
Contents

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RCS outsourcing
Introduction.................................................................................................................................................4
Total Cost analysis.......................................................................................................................................5
Current personnel cost............................................................................................................................5
Current equipment cost..........................................................................................................................5
Current variable cost...............................................................................................................................5
Bangalore proposal..................................................................................................................................6
Feasibility of proposal..................................................................................................................................6
Performance dimensions.............................................................................................................................6
Cost..........................................................................................................................................................6
Customer satisfaction..............................................................................................................................6
Quality-....................................................................................................................................................6
Least environment disturbance...............................................................................................................7
Efficiency.................................................................................................................................................7
Relative weighting.......................................................................................................................................7
Rationale behind rating...............................................................................................................................8
Scoring model..............................................................................................................................................8
Weighted-matrix model..............................................................................................................................8
Final recommendation................................................................................................................................9
Benchmarking the support desk..................................................................................................................9
References.................................................................................................................................................10

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RCS outsourcing

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RCS outsourcing

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RCS outsourcing
Introduction
In this report, an internet service provider company named as Roell Customer service is considered. The
company provides its services in Ontario and east in two languages viz English and French. The RCS has
received a proposal of outsourcing the support desk services from a company situated in the Bangalore
state of India. There is a need to provide answers to some basic questions so that the RCS can take a
sound decision regarding the proposal (Zerban, 2017).
Total Cost analysis
Current personnel cost
Basis Amount Salaries and Total

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RCS outsourcing
Benefits per year
FTE and Technical
Experts
50 60,000 3,000,000
Supervisions 2 70,000 140,000
Total Personnel Cost 314,0000
Current equipment cost
Basis Amount Cost (per year) Total
Servers 3 6,000 18,000
PC’s 27 900 24,300
Total Equipment cost 42300
Current variable cost
Basis Volume Price Total
Office supplies For
paper etc.
6,00,000 1.30 7,80,000
Total Variable Cost 7,80,000

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Total current cost
Basis Cost
 Total Personnel cost 3,140,000
 Total Equipment cost 42,300
 Total variable cost 7,80,000
Total 39,623,000
Total Current Support Centre Cost 39,623,000
Bangalore proposal
Basis Amount Cost (per year) Total
Fixed Cost - - 3,400,000
Variable Cost 1.15 600,000 690,000
Total Cost 4,090,000
Feasibility of proposal
The data provided above clearly mention that in-sourcing has more benefits for the company in terms of
economy. But the RCS can consider Bangalore proposal as it will generate the profit only (Dawuda,
2017).

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RCS outsourcing
Performance dimensions
Cost- The first criteria to be considered here is the cost. As stipulated above, the company has the
sound financial situation so it can outsource its online support desk. There will be the generation of less
profit comparatively, but the company will be able to expand its business. To get access to the new
market, the company can ignore the slight difference in amount between the current support centre
cost and Bangalore proposal.
Customer satisfaction- the next performance dimension to be considered in this case is the
customer satisfaction. The RCS has reputed image as its experts provide the solution of technical
problems within 8 minutes. This is the major trait for which customers seek the services of the RCS. This
customer satisfaction has to be maintained in Bangalore proposal work also. If customers are satisfied,
the RCS will be able to expand its business geographically (Kehinde, 2017).
Quality- Definitely, the quality of services matter very much. The RCS is known for its excellent
quality. It provides state-of-the art office applications with high speed servers. This quality needs to be
maintained so that customers remain satisfied. It will ensure the stability of the company in the market.
In addition to this, it will give competitive advantage to the company. Many other competitors are there
in market but the RCS provides quality services only though it comparatively charges more.

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Least environment disturbance
Environment deterioration has become a very important international issue. To prevent the company
from any legal complication in future regarding environment norms, the company needs to follow sound
environment strategy. All the environment regulations present in the particular state and country must
be followed. In addition to these, there are some international requirements like the location of the
server, electronic waste disposal etc. the RCS has to produce the minimum waste and that has to be
discarded according to the national or international environment norms (KR, 2017).
Efficiency
The company needs to follow sound strategy so that the work-life balance of its employees is
maintained. If they are happy, efficiency in the work will be increased. In addition to human resources,
physical resources should also be considered. New innovation will provide the efficiency in the
functioning of equipment also. There will be less depreciation cost which will save the total cost
indirectly. The separate department needs to be assigned to respective persons so that no overlap exists
in the working of employees and they can give their 100%.
Relative weighting
Variables Score
Cost 0.25
Consumer satisfaction 0.30
Quality of service 0.15
Environment norms adherence 0.15

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Efficiency 0.15
Rationale behind rating
The customer satisfaction is given the highest rating as it will decide the existence of the company in the
market. Everything depends on customer satisfaction. If customers are happy, the company can make
other changes with the passage of time. After customer satisfaction, the preference is given to cost. The
RCS is present in the market to do business. Cost is one of the major factors in deciding the outcome of
the proposal. Other three dimensions of quality of service, environment norms adherence and efficiency
are given equal weight. There is no dimension which can be ignored so sound weighting is provided to
each criterion (Javid, 2017).
Scoring model
 5- Exceptionally well
 4-excellent
 3-good
 2-average
 1-poor
 0-very poor

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Weighted-matrix model
Performance
Dimensions
Current support system Bangalore proposal
Weight Score Weighted
Scores
Scores Weighted
Score
Cost 0.25 3 0.75 4 1.0
Consumer
Satisfaction
0.30 3 0.90 4 1.20
Quality of
Service
0.15 4 0.60 5 0.75
Adherence to
environment
norms
0.15 5 0.75 5 0.75
Efficiency 0.15 3 0.45 4 0.60
Total 1.00 18 3.45 22 4.30