Outsourcing of non-critical functions is so common that providers of outsourced services generally offer a Business Case tool to demonstrate how cost effective their solutions are. This module is for internal analysts who need an independent view to ensure the true costs are considered and to test sensitivity to underperformance.

This robust Excel tool brings thoughtful focus to insourcing and outsourcing decisions. Its fool proof interface features step-by-step user instructions to capture a wide variety of well-organized cost driving data to ensure appropriate costs are fully considered. Results are displayed in summary form (including a Payback Chart) plus detailed period-by-period results for each financial element.

In this module you will see and practice construction and integration of the complex and versatile insourcing / outsourcing tool described above. You will learn to use multiple Excel and VBA capabilities to ensure investments and estimated benefits will be entered accurately, calculated correctly, and displayed clearly, and that multiple parameters can be changed dynamically to provide engaging real-time analysis.

Included are:

• VBA selection of insourcing or outsourcing (to ensure correct entries)
• VBA setup of calendar parameters, currency, hurdle and tax rates, and labor format
• VBA entry of benefit and investment data, including start and end dates and ramp up and ramp down periods
• VBA control of depreciation methods and periods
• VBA control of uncertainty (sensitivity drivers)
• Calculation of optimistic, expected, and pessimistic cases by financial element by month for the periods defined
• Engaging summary report of Payback, NPV, IRR, and period results

The outsource model associated with this module is available for use as is, or can be modified or used as the structural basis for specialized models.

The features of this module are:

• A focused guide through in/out sourcing concepts
• A working example of a complex model
• Access to “Help” at all times: extensive help for working with Excel and VBA and dealing with financial and accounting concepts