Senior Management And It Team : Detailed Report On Infrastructure Needed

significantly on R&D costs. We chose to spend nothing for our entry­level cameras and only

The costing approach should be based on per Transaction Basis rather than on per kit or per pound basis because of the following reasons:

As previously mentioned, the use of activity-based costing gives Kemps an advantage when competing for customers in an ever more competitive and growing market. However, the ability to succinctly distinguish how many small changes, when taken together, can have a large impact on cost savings (and therefore profit), is necessary in order to convince customers who may not be familiar with the many benefits of ABC. Mainly, management would want to demonstrate how the cost savings that they enjoy are ultimately passed on to their customers, perhaps by showing some of the improvements that have been made to their own company as a result of implementation, specifically focusing on advancements that would have a direct impact on the customer’s business.

The investment requested is £12 million. Strategic and operating benefits were summarized in our previous memo to you. We have made, however, some changes to our investment analyses, which appear below.

"A one-day increase in responsiveness is huge in outsourced manufacturing", says Robert Meshew, IT Systems group program manager in the Microsoft Home and Entertainment division. "It means you have the time to respond to problems, potentially saving thousands of dollars in unnecessary air freight and expediting costs".

Now that the initial startup phase of our company is complete, our team of Analysts has determined what we have deemed reasonable costs, considering that our definition of “reasonable” aligns with yours. In order to defend our stance on what we feel is reasonable, we have considered the nature of costs, such as air travel for business meetings and the use of our high quality materials, by researching the market for affordable, high-quality materials and have put standards in place to keep air travel valid for these government contracts. With the understanding that although the nature of the cost may be considered acceptable, the amount of the cost may not meet standards when it comes to costs defined as “reasonable” (Murphy, John Edward; Guide to Contract Pricing, pg. 47). With this in mind, we continue to research the market to find adequate material at a much lower cost. We have used this data to create what we feel is a cost that would not and should not exceed what any prudent person would pay in a competitive business environment. We are aware of the competition and have made it a strong incentive of ours to save on costs for the items that we are providing to you. Allowability of our costs is guided by the 52 generally applicable cost principles that are based on specific laws and policies (Murphy, John Edward; Guide to Contract

Office Supply Incorporated (OSI) is a company in crisis, with challenges in its cost structure and poor IT performance. Outsourcing to Technology Infrastructure Solutions (TIS) is an opportunity to both reduce costs and complexity for the firm, but first must consider whether outsourcing is a good strategic fit for OSI. Outsourcing is known as the practice of turning over responsibility of some or all of organizations information systems to a foreign firm in order to stay competitive. Outsourcing is not new to the business world, as it dominated the manufacturing sector the past couple of decades. There are various advantages and disadvantages. Advantages include lower costs, better quality, and downsizing to focus on the

Alternative 2: Pagoda can choose to outsource the online help desk service to the New Delhi firm and hope that the transition is seamless and goes unnoticed to their customers. Outsourcing the online help desk services will free up more time and money for Pagoda to put towards updating their equipment software to ensure that they remain a state-of-art business, as well as staying ahead of their competitors in the industry.

While using such a simplistic volume measure to allocate overheads as an overall cost driver, this approach seldom meets the cause-and-effect criteria desired in accurate cost allocation. This method of costing has become increasing inaccurate as the relative proportion of overhead costs has risen. This distortion of costs can result in inappropriate decision making. ABC is therefore an alternative approach to the traditional method or arbitrary allocation of overheads to product, services and customers.

Back-office functions that are complicated in nature, but the size of your company is preventing you from performing it at a consistent and reasonable cost, is another advantage of outsourcing.

Avoid labor problems and Setup Investment: By outsourcing its field support service, DELL does not need to worry about its labor problem since the outside vendor would provide them the best manpower and facilities for their clients. Also, if DELL keeps the function in-house, they will eventually have to make a major investment in the support service in order to ensure the quality of the service. Outsourcing could help them save the setup cost including the high training cost and facilities investment.

The organization that I was working in the past before starting my Master’s program is Cognizant Technology Solutions. It is a Multinational Corporation that provides Information Technology, Consulting and Business Process outsourcing services. I was working as a Senior Systems Executive proving the clients with monitoring and requests handling services. My team and I also made reports from big data and presented it to the clients with suggestions in order for them to make better business decisions. From my experience working there through the decision makings and work processes and through my research about the organization, I find that Cognizant Technology Solutions is very analytically competitive within the organization and also externally through the intelligent services they provide their clients.

as much as possible. Throughout the years, the company has been trying to do as much as they

As a continued result of the company’s added tensions with software maintenance and technical support follow-up, customer and employee satisfaction has suffered greatly and employees are too preoccupied with the technical servicing that they have not been generating the appropriate sales to bring in revenue and keep the company afloat. Consequently, I have been placed as a lead investigator in researching the current business process and looking into the possibility of outsourcing the technical support process to a call center that can enhance the customer experience and assist in concert with our task force called Nerdy Tech where we can

Helpdesk will be provided to end-users. They can ask for support to handle the problem or trouble when they use the system. Go live activities which include analysis the performance of the system and defect detection, will be continuously carried out to ensure the system perfect fit into the business process of company. By using remote support tool, vendor can get the report of system status for monitoring system transaction and any issues occurs will be included as feedback. If any difficulty on using the system is faced on user site, they can get vendor assist based on the service level agreements (SLAs). The SLAs will state out the responsibilities of vendor for clients in term of services and support provided. Feedback from end-users will be gathered for improving the acceptance of end-users for the new system. Training will be given to end-users continuously in order to maximize performance of system during their use. If any issue occurs or faced by end-users, they can search through the support database that embedded in the system for solutions or send a message to vendor for assistance (refer to Figure