What are the Cost Savings when a company outsources?
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 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 Determine the evaluation criteria you will use to select the preferred vendor(s).
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.