Table of Contents
1. Introduction. 1
2. Organization’s
Overview.. 1
3. Mumbai
Proposal 2
4. Analysis
of Proposal 2
4.1. Total Cost Analysis. 2
4.2. Criteria’s for evaluating the sourcing Decision. 3
4.3. Relative weighting for each criteria. 4
4.4. Weighted Matrix Model 4
5. Final
Recommendation. 5
6. Performance
Metrics for Support Desk. 5
7. Conclusion. 6
8. References. 6
1.Introduction of the Brice Customer
Services
The
aim of this report is to provide deep insights regarding Brice Customer Services
Support Desk operations and whether outsourcing the support desk operations is
a good decision for the organization or not. BCS is an internet service
providing corporation which meets the needs of small organizations and
individual customers. A corporation that is situated in Mumbai India has
contacted BCS and give a proposal that BCS should outsource its online support
desk services. As the organization is located in Mumbai India the labor cost
will be quite lower as compared to Ontario Canada. It means that BCS has the
option to save significant amount of labor cost which will boost the
profitability of the business. For evaluating the outsourcing decision, the
total cost analysis has been performed along with Weighted Matrix model.
2.Organization’s Overview of the Brice
Customer Services
BCS
(BRICE Customer Services) provides internet services to its customers. BCS is
an internet service providing corporation which meets the needs of small
organizations and individual customers. The corporation target such customers
who require high-quality services and can pay premium price for it. The
organization provides high-quality applications and software to many small
organizations. Along with office applications & software BCS also provides
storage services as well because BCS has high-speed servers from which the
business can get fast access. The corporation is located in Ontario, Canada,
and serves the territory of Ontario & East. BCS services are provided in
both French & English languages.
The
corporation pays special attention to customer services. For ensuring high-quality
customer services the organization has online support desk. The customers who
face any problem regarding the internet can contact the online support desk so
that their problem can be addressed. The experts are available online who
respond to the request of the customers. Usually the problem of the customers is
resolved in less than 8 minutes. Many customers of BCS have stated that due to
the support desk services they have chosen this corporation. In other words the
organization has achieved customer loyalty because of its online support desk.
3.
Mumbai Proposal of the Brice Customer
Services
The
online support desk facility has the capacity to handle 1000000 requests each year. However, the
organization does not assume that the requests will change in near future. A
corporation that is situated in Mumbai India has contacted BCS and give a
proposal that BCS should outsource its online support desk services. Currently
the outsourcing proposal sounds quite attractive. The corporation that is
situated in Mumbai India has individuals who are fluent in English language and
also have limited knowledge of French language as well. Not only these individuals
are from technical backgrounds, but they also have relevant qualifications as
well.
As
the organization is located in Mumbai India the labor cost will be quite lower
as compared to Ontario Canada. It means that BCS has the option to save
significant amount of labor cost which will boost the profitability of the
business. Another benefit of this proposal is that the online support desk
exists online which means that the customers will not know about this switch.
Before making any decision regarding the outsourcing of its online support desk
many things are going to be analyzed critically. There are many factors as cost
and employee capabilities before making this decision. Because of the proposal
is not analyzed critically than the corporation might make a wrong decision.
4.
Analysis of Proposal of the Brice
Customer Services
4.1.Total Cost Analysis of
the Brice Customer Services
Table 1: Total Cost Analysis
Details
|
Current
Online Support Centre
|
Mumbai
Proposal
|
Fixed
Costs
|
|
2500000
|
Personnel
costs
|
|
|
50 FTE
experts
|
2500000
|
|
2
supervisors
|
140000
|
|
Total
personal cost
|
2640000
|
|
Equipment
Costs
|
|
|
3
servers
|
18000
|
|
27 PCs
|
24300
|
|
Total Equipment
Cost
|
42300
|
|
Total Fixed
Cost
|
2682300
|
2500000
|
Variable
Costs
|
|
|
contract
|
810000
|
690000
|
Total
Variable Costs
|
810000
|
690000
|
Total
Cost
|
3492300
|
3190000
|
n
the above table, the current online support center costs and Mumbai proposal
costs can be seen. Before making the outsourcing decision it is essential to analyze
whether the cost of outsourcing is lower than the current online support desk
or not. The above table includes both fixed and variable costs of the current
and proposed options. After evaluating the fixed and variable costs the total
cost of the proposal and current center is evaluated. It can be said that the
cost of current online support desk is higher than the Mumbai proposal (Campbell, Edgar, & Stonehouse, 2011).
The
total fixed cost of the current online support desk is $2682300 which is higher
than the fixed cost of Mumbai proposal that is $2500000. The variable cost of
current support center is also higher than the proposal. The total cost of
current support desk is $3492300 which is higher than Mumbai proposal. It can
be said that if BCS can accept the Mumbai proposal than it can save $302300. It
means that in terms of cost outsourcing decisions will be beneficial; because
the corporation can save significant amount of money, which is not possible
with current online support desk option (Crosson & Needles, 2010).
4.2.Criteria’s for evaluating
the sourcing Decision
When
the corporation considers different options for selecting the cost is not the
only criterion for taking the decision, there are many other criteria on the
basis of which the decision is evaluated. Here cost is only the first criteria
for evaluating the sourcing decision there are four other criteria as well on
the basis of which the sourcing decision will be evaluated. The following are
the five criteria which evaluate the sourcing decision:
·
Cost
·
Language Skills
·
Technical Skills
·
Relevant Qualification
·
Employee Accent
The
language skills are highly essential for the online support desk because the
customers who are going to be entertained live in Ontario Canada, who speak
French & English language. The employees who live in India will definitely
have speak fluently in English & French otherwise the customers will unable
to understand what the employees are saying. As BCS provides internet services
the employees must know the technicalities of the internet and what kind of
issues can arise regarding the internet service. Without technical knowledge
the employees might unable to provide the right solution to the problem (Mahadevan, 2009).
A
relevant qualification is very important in any corporation, and in BCS it is
important that the employees must be qualified so that they can understand the
problem of the customers and can provide them the right solution. The customers
of BCS should not know that BCS has outsourced its online support desk to
another country. For this it is necessary that employees must have French or
Canadian accents so that customers won’t find out the difference.
4.3.Relative weighting for each
criterion
Criteria | Weight |
Cost | 30% |
Language
Skills | 30% |
Technical
Skills | 20% |
Relevant
Qualification | 10% |
Employee
Accent | 10% |
After
choosing the relevant criteria for the outsourcing decision the weights are
assigned tom each criterion on the basis of importance of each criterion. Cost
and Language skills are highly essential in online support desk. Therefore,
both are given the highest weight of 30%. After Cost and Language skills the
technical skills are important in each employee, so technical skills have given
the weight of 20%. The relevant qualification and employee accents are considered
less important than other criteria. Therefore, these are given the lowest
weight of 10%. The weight to each criterion is assigned on the basis of
importance and its need in the online support desk. When the weight is assigned
to the criteria the next thing which is done is giving ranking to the criteria (Kerzner, 2009).
Table 3: Ranking Scale
Ranking
Scale
|
Remarks
|
5
|
Highly
Satisfactory
|
4
|
Most Satisfactory
|
3
|
Somewhat
Satisfactory
|
2
|
Satisfactory
|
1
|
Unsatisfactory
|
In
the above table, the ranking scale is presented. Rank 5 indicates high
satisfactory level, whereas rank 1 indicates least satisfaction. The 5 criteria
which are discussed above are given ranking from 5 to 1 on the basis of
satisfactory level. For instance satisfactory level of language skills is
higher in current support desk rather than proposed support desk. Therefore
rank 5 is given to language skills of insourcing support desk and rank 4 is
given to the language skills of outsourcing support desk option (Brown & Bessant, 2013).
Table 4: Weighted Matrix Model
Criteria
|
Weight
|
Insource
|
Outsource
|
|
|
Rank
|
Total
|
Rank
|
Total
|
Cost
|
30
|
3
|
90
|
5
|
150
|
Language
Skills
|
30
|
5
|
150
|
4
|
120
|
Technical
Skills
|
20
|
4
|
80
|
4
|
80
|
Relevant
Qualification
|
10
|
2
|
20
|
2
|
20
|
Employee
Accent
|
10
|
3
|
30
|
2
|
20
|
Total
|
100
|
|
370
|
|
390
|
In
the above table score of the Insource option and Outsource option are provided.
It can be seen that the score of the outsourcing option is higher than the
score of insourcing option. It means that the best decision is to outsource the
support desk so that the profitability and efficiency of the business can be
enhanced.
5.
Final Recommendation of the Brice
Customer Services
It
is recommended to the BCS to outsource its support desk operations because,
through this opportunity the organization will able to reduce its expenses up
to lot of extents. Not only the corporation can expand its business, but also
the efficiency and profitability of the decision will increase with this
decision.
6.
Performance Metrics for Support Desk
of the Brice Customer Services
There are many performance
metrics from which the performance of the support desk can be measured. The
following are the key 4 matrices from which the performance of the employees
can be measured:
·
First Response Time
·
Best Support Agent
·
Promoter Score
·
Customer Feedback
The first
response time is the time in which the customer complaint has been received,
and initial communication is made with the customers. The lower the FRT, the
higher will be customer satisfaction. The best support agent will allow the business
to know which agent’s performance is higher. The promotor score will tell the
business how much customers are promoting the services of this business. In the
last the feedback from customers can also tell the performance of the support
desk (Spender, 2014).
7.
Conclusion of the Brice Customer
Services
It
is concluded that the score of the outsourcing option is higher than the score
of insourcing option. It means that the best decision is to outsource the
support desk so that the profitability and efficiency of the business can be
enhanced. It is recommended to the BCS to outsource its support desk operations
because, through this opportunity the organization will able to reduce its
expenses up to lot of extents. Not only the corporation can expand its business,
but also the efficiency and profitability of the decision will increase with
this decision.
References of the Brice Customer
Services
Brown, S., & Bessant, J. (2013). Strategic
Operations Management. Routledge.
Campbell, D., Edgar, D.,
& Stonehouse, G. (2011). Business Strategy: An Introduction (3 ed.).
Macmillan International Higher Education.
Crosson, S. V., &
Needles, B. E. (2010). Managerial Accounting. Cengage Learning.
Kerzner, H. (2009). Project
Management: A Systems Approach to Planning, Scheduling, and Controlling (10
ed.). John Wiley & Sons.
Mahadevan, B. (2009). Operation
Management: Theory and Practice. Pearson Education, India.
Spender, J.-C. (2014). Business
Strategy: Managing Uncertainty, Opportunity, and Enterprise. OUP Oxford.