M8 CASE STUDY OUTSOURCING DECISIONS WORSHEET: 3 Differential Analysis Based Upon Relevent Data for the Year: \begin{tabular}{ll|l|l|l|l|} \hline & & Relevant or & & DIFFERENCE (IIN-HOUSEIrrelevant & \$IN-HOUSE \\ 5 & VARIABLECOSTS: & SOUTSOURCE \\ 6 & Email License & & & \\ \hline 7 & Virus Protection License & & & \\ \hline Othr Variable Costs & & & \\ \hline 9 & FXXED COSTS: & & & \\ \hline 10 & Computer Hardware Costs & & & \\ \hline \end{tabular} WHICH OPTION (IN-HOUSE OR OUTSOURCE) IS THE BEST OPTION BASED A. MINIMUM 4 FACTORS TO CONSIDER, OTHER THEN IUST QUANTIATIVE ANALYSIS, AND WHY THE FACTORS WIU BE 16 USEFULIN THE DECISION. 17 18 19 1. 4 Decision Case 8-1 BKFin.com provides banks access to sophisticated financial information and analysis systems over the Web. The company combines these tools with benchmarking data access, including e-mail and wireless communications, so that banks can instantly evaluate individual loan applications and entire loan portfolios. BKFin.com's CEO Jon Wise is happy with the company's growth. To better focus on client service, Wise is considering outsourcing some functions. CFO Jenny Lee suggests that the company's e-mail may be the place to start. She recently attended a conference and learned that many major companies are outsourcing their e-mail function. Wise asks Lee to identify costs related to BKFin.com's in-house mail application, which has 2,300 mailboxes. This information follows: Variable costs: E-maillicensemonth$7permailboxper Variable costs: $8,050monthlysalaryfortwoinformationtechnologystaffmemberswhoworkonlyone-mail$16,100permonth Requirements 1. Compute the total cost per mailbox per month of BKFin.com's current e-mail function. 2. Suppose Mail.com, a leading provider of Internet messaging outsourcing services, offers to host BKFin.com's e-mail function for $9 per mailbox per month. If BKFin.com outsources its e-mail to Mail.com, BKFin.com will still need the virus protection software, its computer hardware, and one information technology staff member, who would be responsible for maintaining virus protection, quarantining suspicious e-mail, and managing content (e.g., screening e-mail for objectionable content). Should CEO Wise accept Mail.com's offer? 3. Suppose for an additional $5 per mailbox per month, Mail.com will also provide virus protection, quarantine, and content-management services. Outsourcing these additional functions would mean that BKFin.com would not need either an e-mail information technology staff member or the separate virus protection license. Should CEO Wise outsource these extra services to Mail.com? M8BFK CASESTUDY DIFFERENTIALANAEYSIS one information technology staff member, who would be responsible for maintaining virus protection, quarantining suspicious e-mail, and managing content (e.g., screening e-mail for objectionable content). Should CEO Wise accept Mail.com's offer? 3. Suppose for an additional $5 per mailbox per month, Mail.com will also provide virus protection, quarantine, and content-management services. Outsourcing these additional functions would mean that BKFin.com would not need either an e-mail information technology staff member or the separate virus protection license. Should CEO Wise outsource these extra services to Mail.com? ORIGINAL RESPONSE REQUIREMENTS: FIRST: Copy and paste the Requirements into the Excel Template above to make certain you have all the data and requirements listed to make certain you answer everything asked of you. SECOND: In a Word Document, complete a full analysis from the information above about which option the company should go with and WHY. In addition, other than the quantitative answer, give two qualitative reasons why you think the quantitative option is good and then two qualitative reasons why you think you might not go with the quantitative