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After procuring the TPUs, SmartCloud would need to install and integrate these TPUs with the existing servers in their data centre. The CEO of SmartCloud
After procuring the TPUs, SmartCloud would need to install and integrate these TPUs with the existing servers in their data centre. The CEO of SmartCloud would like to investigate whether he should outsource or deploy his own technicians for this work. The goal is to install some 600 TPUs within 20 days. Option A is to use its own internal manpower. Internal manpower rate of each technician is $180 per man-day. These technicians have a work productivity of 1.5 TPUs per man-day. This means one technician can install 3 TPUs over 2 days. Option B is to outsource the work. EzTech, an external IT services company with experience in this kind of work, has quoted SmartCloud the manpower rate of $4,000 for each manpower bundle of 4 specialists working over 5 days. So, if there were 7 specialists working over 6 days, it would cost $16,000 as this would take up 4 manpower bundles. It would cost the same if there were 8 specialists working over 8 days. Additionally, there will be a site manager costing a fixed $5,000 per project that SmartCloud must also pay for. EzTech is willing to accept a penalty of $1,000 per day if it
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