OUTSOURCING COST COMPARISON - INSTRUCTIONS
Source: https://yenra.com/outsourcing-to-india/
Companion: outsourcing-cost-example.csv
Fictional annual USD cash amounts, before tax. Same workload and service scope
in both options. No financing or currency movements. The internal baseline
is assumed fully avoidable after transition; test that assumption in practice.

The CSV holds FIXED values, not live formulas. Open it in a spreadsheet or
text editor; replace inputs and recalculate in your own model. Rows after the
recurring saving fraction are source/context notes. Saving fractions are
ratios, not dollars: 0.09375 = 9.375%; 0.1875 = 18.75%.

Internal avoidable baseline: 480000.
Supplier: 300000; retained oversight: 60000; connectivity/access: 18000;
travel/independent review: 12000; one-time transition: 45000.
First year: 435000. Saving: 480000 - 435000 = 45000; fraction 45000/480000.
Recurring later year: 390000. Saving: 90000; fraction 90000/480000.
Supplier quote alone is 37.5% below baseline, which overstates full savings.

SENSITIVITY ROUTINE
1. Identify costs that will remain internally; remove them from the avoidable
   baseline or include them in the outsourcing option, without double counting.
2. Add severance, overlap, retained facilities, exit and other actual costs.
3. Match training, hours, languages, volume and service quality between cases.
4. Record contract currency. For INR prices, specify USD per INR and multiply
   INR cost by that rate; document changes rather than mixing quote directions.
5. Recalculate first-year and recurring totals separately. Divide savings by
   the comparable internal baseline. A zero baseline cannot yield that ratio.
6. Test a plausible adverse price/volume/transition case and state assumptions.
7. Combine cost findings with pilot quality, data responsibilities and exit plan.
Keep dated quotes and identify the owner of each assumption.