Cost Effectiveness of Vehicles by Outsourcing A Case Study of City Circle Bhopal, M.P.M.K.V.V.Co.Ltd
Keywords:Out source, vehicles, cost effectiveness, in house, service provider, departmental cost, out sourced cost
The term "outsourcing" is also known as the transfer and delegation of some operation of business through external service provider. The purpose of outsourcing is to take advantage of service provider expertise in non-core activity with economies of scale so that organisation may reduce their expenses and also provide better quality of services, to their clients in this way, M.P.M.K.V.V. Co. Ltd. Has adopted this technique for reduce their cost and improving their financial condition. This research paper reflects cost effectiveness of vehicles through outsourcing of city circle Bhopal. The M.P.M.K.V.V. Co. Ltd. Bhopal carried out various activity out of them some activities were outsourced but in this research paper, we have covered only one activity i.e. vehicles. Vehicles are needed for day to day execution of various job like operation and maintenance of electrical equipments, line and substation, recovery of demand from existing as well as permanent disconnected consumers, attending consumers complaints, regarding power supply and energy bills and supervising and monitoring of various work carried out by company. The three types of vehicle are used in City Circle Bhopal. Those are truck, pickup and Jeep/car. In this research study we have taken a case study of vehicle outsourced in City Circle Bhopal, and compared the cost of outsourced vehicles with the departmental cost (Cost to department if this activity would be performed in house) and found that departmental cost is very high as compared to outsourced cost and we come to the conclusion and found that the cost effectiveness can be achieved by outsourcing of vehicles.
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