Cost-Effectiveness Analysis and Outsourcing Decision at Honda

Requirements:

1. Perform a cost-effectiveness analysis for Honda to decide on outsourcing its IT infrastructure management.

Option	Total Costs ($)
In-House IT Management	18,000,000
Outsourced IT Management	15,000,000

• Compare the total costs of outsourcing IT infrastructure management versus maintaining an in-house IT department at Honda.
• Evaluate the potential cost savings and risks associated with outsourcing IT functions.
• Recommend Honda's optimal strategy based on cost-effectiveness analysis and long-term business objectives.