Outsourcing & Shared Services Business Cases: Baseline Costs, Vendor Pricing, Transition Costs, Retained Organisation & Payback

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Turn the accounts payable team of a fictional manufacturer into a full annual baseline cost and a cost per invoice: the number every provider quote is compared with.
• Turn three fictional provider quotes with different price models into one comparable annual price and let a formula pick the cheapest.
• Size the provider team at three fictional delivery locations from work shares and productivity, add up the cost and compare the blended cost per invoice of two location mixes.
• Add up the one-off cost of moving the work: knowledge transfer, months of dual running, a fictional severance placeholder, the programme team and a contingency.
• Cost the small team that stays to manage the provider, add governance as a share of the contract value and compare the future annual run cost with the baseline.
• Test five fictional service levels against their targets, price the service credits, apply the cap and find the net monthly fee.
• Put the one-off costs and the annual saving on a five-year timeline, follow the cumulative cash, find the payback month and discount the case to an NPV.
• Test how the annual saving reacts to volume, provider price and retained cost, find the break-even volume and chart the swings to support a decision.