Cost Benefit Analysis

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CostBenefit Analysis

CostBenefit Analysis

Acost-benefits analysis is a process of analyzing the issuessurrounding the decisions made for a business. All the positivefactors which are the benefits are added while negative factorssubtracted. It is the most necessary part of National Telecom becauseit is the costs or savings that can lead the company to success. Thepurpose of this is to illustrate the costs of the project and comparethem with the benefits and savings to determine if the innovationsare worth pursuing.


These are costs relatedto the proposed project. There are monetary expenses incurred inimplementing the features of the mobile voice and broadband servicessuch as payroll expenses, training expenses, production materials andlicenses. This comes because the company lacks a centralizedinformation system that can detail the available job vacancies. Thecompany is most likely to incur cost in buying hardware for theweb-based systems that will enable it to overcome the challengesrelating to inaccurate and out-of-date data and unpredictablecommunications. Additionally, there are charges associated withsoftware installation and training whereby IT group will have theduty to install new software and training group to train allemployees. Besides, there is need to train all staff and employeesaccordingly in their respective data entry, timesheet, and reportingtasks on the new web-based system. Training will require fundingwhich will lead to further spending by the firm.

Moreover,there will be the necessity to compensate personnel for their effortsin ensuring the reduction paperwork in keeping information ofapplicants. The remuneration will however be beneficial in the longrun because it will mean that there will be the ease in retrievingdata for evaluating the candidates suitable for various areas. Inthis case, the business will need an executive sponsor who will beable to provide operational support for the project. Similarly, therewill be the need to employ a technologist who will offer any kind oftechnological support for the project. The all-inclusive projectmanager will manage the business case and project team.


Theseare benefits anticipated as a result of successful implementation ofthe innovations related with the activities such as sales,purchasing, marketing operations as well as the customer serviceprojects. They will include monetary factors such as direct profitsfrom the products and services. Equally, the benefits will berealizable as a result of increased contributions from the HR expertswho will see the company through a process of decreasing the costs ofproduction. The benefits will equally include the non-monetarybenefits of the innovations such as money saved, income produced,time and effort saved and interest accrued. There will be reductionin overhead costs in the first 12 months and a parallel decrease inemployee turnover in the first one year. This will enable the savingsfor out-process exiting employees and for recruitment, hiring andtraining purposes. There will be an additional immediate decrease intime to generate weekly and monthly financial reports which will comewith monetary values and another immediate reduction in the amount oftime taken to resolve payroll openings for new employees which willbe an added advantage to National Telecom. There will be huge savingsbecause the HR will no longer require working out non-billablepayroll and administrative tasks.

Finally,there will be a decrease in cost of hiring services and maintenanceof equipment since such repairs will only be necessary after sixmonths as opposed to the current monthly situation. The expected lessfrequent use of manual resources that works on non-value added taskswill result in more savings per year. The benefit will be on savingsthat will lead to better payroll for the staff and the approved newemployees.