Pagoda Case Study Calculate Total Costs

ParticularCurrent Help DeskProposed New Delhi Help DeskDirect CostTechnical Personnel Costs40 x $ 40,000 = $ 1,600,000NASupervision Personnel cost3 x $70,000 = $2,10,000NAVariable Cost800,000 x $ 1.5 = $1,200,0008,00,000 x $ 0.5 = $400,000Indirect CostsServers4 x $2,000 = $ 8,0001,500,000 ( admin plus IT costPCs20 x $1,000 = $ 20,000NATotal Cost$ 3038000$ 15,40,0001. Calculate the total cost of outsourcing the online help desk versus staying with the current solution. Which option is cheaper?From the above table it is clear that the outsourcing option is cheaper2. What other factors, other than costs, should Pagoda consider? How would you weight these factors? Given the above, how might you use a weighted-point evaluation system to evaluate the two options?Pagoda should consider the factors like service delivery quality, availability of other service providing companies in Delhi, Technical expertise of the working group, environmental stability of the market and reliability of the concerned company to whom it is thinking to outsource the activity.These factors will be given weightages based on the perceived importance of each of these factors in determining performance of the company. The weightages will be given such that sum of all the weightages will be equal to one. After