Content1. Introduction2. Investment Analysis2.1 Application from ITSLA2.2 Application from Call Centres for All of Mumbai, India2.3 Application from the IT Manager of Bus Away Ltd2.4 Analysis3. Advantages and Disadvantages for alternatives3.1 Advantages for Application from ITSLA3.1.1 Cost effective3.1.2 Overcome labour shortages3.1.3 Concentration on core business3.1.4 Access to world class solutions3.2 Disadvantages for Application from ITSLA3.2.1 Dependence on vendors3.2.2 Lower morale among permanent employees in otherdepartment3.2.3 Loose control and increase company risk3.3 Advantages for Application from Call centres for All ofMumbai, India3.3.1 Improve a company's focus3.3.2 Human capital and cost effective3.3.3 Legal system3.3.4 Location3.4 Disadvantages for Application from Call centres for All ofMumbai, India3.4.1 Corporate image3.4.2 Problem in accent3.4.3 Cultural and societal differences3.4.4 Control3.4.5 Relationship3.5 Advantages for Application from IT Manager of Bus AwayLtd.
3.5.1 Benefit for employee3.5.2 Benefit for employer3.5.3 High quality of homeworkers3.5.4 Better customer service3.6 Disadvantages for Application from IT Manager of BusAway Ltd.
3.6.1 Legal issue3.6.2 Tax issue3.6.3 Feeling of separation or disassociation among employees3.6.4 Problem of employee4. Recommendation5. Conclusion6. List of References7. AppendixAbstractBus Away Ltd. plans to renew a contract among three applications which are application from ITSLA, application from Call Centres for All of Mumbai, India and application from the IT Manager of the company. This study presents which application was recommended with relevant theoretical knowledge along with guidance for research, reflection and collaboration. Therefore, NPV will be using as a discriminator. Results of this study showed that third application is recommended even second application is the lowest negative NPV among the three application. Thus, this study may help the company to konw which application is the worth to invest and resolve the problems.
1. IntroductionBus Away Ltd is considering three applications to provide call centre to deal with customers' bookings and queries which are application from ITSLA, application from call centres for all of Mumbai, India and application from the IT Manager of Bus Away Ltd. The purpose of writing this report is to evaluate the three alternatives and to indicate the advantages and disadvantages of each of the alternative. The results are calculated by using net present value (NPV) model. In addition, relevant and irrelevant costs are justified in this report.
2. Investment Analysis2.1 Application from ITSLATo implement this application, ITSLA provides trained staff and Bus Away Ltd needs to purchase a disused factory in Leominster and pay for the conversion and furnishing fees. This made up a set up of £190000. Besides, the relevant costs are the annual running cost and service fees. These are necessary and all these cost are uncommitted. The...