PROJECT REPORT

CHAPTER-I
INTRODUCTION
Preamble
1. The Armed Forces being one of the oldest profession and an organization, takes
the concept of man management to exemplary highs. With the passage of time it has been
proven time and again that the human resource management in the Armed forces can
withstand the vagaries of time and war. The personnel from armed forces are posted to
peace stations for training, honing and development of skills, which they shall require
during war. Along with the rigorous training in the peace stations there are a number of
functions and events which are organized to upkeep the morale of the workforce and also
for welfare of men and their families. A substantial amount of time, effort and resources
are consumed in planning and organizing such events. Neither the soldiers are trained for
such jobs nor are such competencies required. No wonder the soldiers that are so tough in
the battle field mellow down if the welfare of the families and self are not looked after.
These functions act as a leveraging tool to create a sense of belongingness and family in
the unit to take their morale to that point where he is ready to kill and die for the glory of
the country and the unit that he is serving with.
2. From times immemorial the relationships that are formed between people is
strengthened by their socializing and sharing of meals with their counterparts. Especially
so in the context of the cultural richness of the country where we thrive on the concept of
“Athithi Devo Bhava” wherein the host of the gathering goes all out in making those he is
looking after feel at home. The gesture is returned with the same gusto by the people

2
being looked after. This gives the relation a cutting edge and an unimaginable degree of
“Espirit de Corps”.
3. Selected youths with sound health and right spirit of mind are given an opportunity
to join the Army. They are further screened, trained and then converted into a soldier to
achieve the Army's ultimate goal of safeguarding the sanctity of our boundaries. Army as a
whole has one aim 'Victory in War', 'Supremacy in Peace' and be the 'backbone of the
country' in all other eventualities. To achieve its aim, Army has to tailor its training and
administration in varied forms. Various types of talents are discovered and utilized to
maintain high standard of training, rich traditions, indomitable spirit and sense of
dedication. But such a fine organization uses the talents of these soldiers to organize
various events/functions in the army. The individual contribution towards success of events
is acknowledged with a momentary, ‘SHABASH!’ This contribution of talented and
dedicated soldiers is actually the golden dust. It is high time, we make an attempt to make
these assets our force multipliers.

3
Project Problem
4. The constant vigil that has to be performed in maintaining the internal and external
security of the nation, most of the times in uncongenial terrain and climate takes its toll on
the man and the machine. In aiding the civil authorities against floods, earthquakes,
communal violence and other internal disturbances add to the toll. To add to the peril the
events organized for their welfare, which are beyond doubt very vital, further aggravates
the strain and adds to the fatigue of all human and mechanical resources. It is ultimately
the same souls for whom these events are organized that are made responsible for these
events to be conducted, especially in peace stations. The scale of these events varies
from formation level to units/sub unit level. A constraint of manpower and resources and
their deficiencies need no introduction. It is felt that the events/functions in peace time can
be better handled by civilian agencies. With this as the backdrop, a need was felt wherein
the events so organized be outsourced to civil agencies, thereby reducing the stress and
strain on the personnel of the armed forces and allowing them to perform their primary
task. Apart from giving them a breathing space, it would also help make them professional
and allow them to be trained to perform their assigned tasks to the best of their abilities.
This study aims at identifying the functions and events which are necessary and presently
being performed by the armed forces. With the advent of professionalism in event
management across the country, involvement of competent civil agencies to handle such
requirement of Armed Forces will spare the armed forces to concentrate on the sole aim of
training, rest and recoup. It is then only that the proverb, “The more you sweat in peace,
the less you bleed in war” shall justify. Moreover, the resources like vehicles, regimental
stores etc can be then utilized more effectively.

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5. The above proposal, received from the environment, was analyzed at Management
Studies, Directorate General of Staff Duties, Integrated Head Quarters of Ministry of
Defense (Army). The proposal was short listed for study by management institutions,
keeping in mind the intensity of need and payoffs likely to accrue. The project was further
apportioned to ITM, Mussoorie, based on the Advanced Work study Course conducted
and the subjects dealt with by them. Hence the study titled “To identify the scope of
employment and utilization of civil agencies in conduct of functions in peace station in a
cost effective manner” was sponsored by HQ South Western Command with Bathinda as
the location of study.
History of Military Station, Bathinda
6. Prior to 1971 the military station area used to be a camping ground for troops
proceeding on exercise from Ambala and Jallandhar towards Suratgarh and Sri
Ganganagar. A transit camp was also established at Bathinda during ‘Operation Cactus
Lily’ in 1971.
7. In the wake of 1971 war, operational requirements necessitated the construction of
a proper military station at Bathinda for local field formations and administrative units. To
start with, Ammunition Depot, Hissar was relocated at Bathinda in 1973. Government
sanction for acquisition of 5,592.23 acres of land was accorded on 01 July 1974. Based on
various sanctions given by government thereafter, a total of 13630.13 acres of land is held
in the station as on date.
8. 10 Corps was raised at Bathinda, on 01 July 1979. It was assigned an area of
responsibility extending from Fazilka to Bikaner that had earlier been the responsibility of 2
Corps. Bathinda Military Station has many facilities such as:
(a) Shopping Centers
(b) Sajni Shop
(c) Banking like SBI, PNB and ICICI.
(d) Medical Facilities

5
(e) Recreation Facilities like Nature Park, Golf Course, Riding, Skeet Shooting
Club and Chetak Park.
(f) Chetak Officers’ Institute with Cafeteria, AC Bar and Ice Cream Parlor, AC
Banquet Hall, AC Family Party Room, Guest Rooms, Internet and STD Facilities,
Badminton and Tennis Court, Open Air Cinema and AC Barber’s Shop.
(g) Chetak Sports Complex with facilities of Swimming, Tennis, Squash,
Badminton, Basket Ball.
(h) Other facilities include Angling, Chetak Water Sports Club, Chetak Library
and Para Sailing and Religious Institutes like Mandir, Gurudwara, Church and
Masjid.
Hence, there could not be a better location for conduct of the project study.
9. The Armed Forces are expecting following gains through the project study:
(a) Improvement in quality of life of troops in peace stations.
(b) Availability of troops for training thereby enhanced focus on peace time
training.
(c) Availability of trained manpower for priority tasks like operations/I internal
security duties.
(d) Conduct of functions/events by professional event managers will improve
standards of such events.
(e) Better civil military liaison.
Aim of the Study
10. Identify the Scope of Employment and Utilization of Civil Agencies in Conduct of
Functions in Peace Station in a Cost Effective Manner.

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Scope of the Study
11. The study should encompass the following :
(a) Identify the functions and events presently being performed by the armed
forces at peace station but can be outsourced to civil agencies.
(b) Identify the procedure of outsourcing the events / functions.
(c) Evaluate the cost to exchequer in existing system vis-à-vis proposed system
of outsourcing.
Project Objectives
12. The study should have the following objectives :
(a) Identify the functions and events being performed / organized by the Armed
Forces at a Peace Station.
(b) Identify the functions and events which can be outsourced to civil agencies.
(c) Develop a framework of attributes for selection of functions, events and tasks
to be outsourced.
(d) Develop general guidelines / procedure for outsourcing leading to formulation
of SOP at formation/unit level.
(e) Study will be limited to Peace Station Bathinda for data collection and
analysis.
(f) Evaluate the cost to exchequer in existing system vis-à-vis outsourcing
procedure (New Year celebrations at COI Bathinda shall be analyzed as a sample
case)
(g) Data will also be collected and analyzed from 6 (I) Armoured Brigade located
in a modified field station.

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CHAPTER 2
METHODOLOGY ADOPTED
Primary and Secondary Data
13. The increasingly complex nature of management research and government has
focused attention on the uses of research methodology in solving managerial problems.
The credibility of the results derived from the application of such methodology is
dependent upon the up to date information.
14. Bathinda cantonment one of the largest in Asia gives a clear and vivid data and was
therefore selected as project destination as almost all the functions could easily be
covered as in the scope of the project. Initially the team faced certain problems as there
was a difficulty in getting the required information due to gap in communication. However
the problem was resolved by interacting at the highest level.
15. The primary data are those which are collected afresh and for the first time, and
thus happened to be original in character. Such are published by authorities who
themselves are responsible for their collection. The secondary data, on the other hand are
those which have already been collected by some other agencies, and which already have
been processed.
16. During project in Bathinda due to non availability of secondary data the information
was based on the primary data, which was collected from files and other associated
documents. Though the data was available in noting and files but the team needed data
and information in structured format. It was decided to design questioner to seek the
required information essential for analysis.
Method of Collecting Primary Data
17. The collection of primary data management research is of paramount importance to
assist management in making decisions. Depending upon the nature of information
necessary the following methods of collecting primary data are available.
(a) Observation Method The investigator collects the requisite information
personally through observation .To analyzes the organization of event certain
functions were observed and direct observation technique was adopted.

8
(b) Questionnaire Method A popular and common method for collection of
primary data is by personally interviewing the individuals. The same technique was
followed in Bathinda.
(c) Mailed Questionnaire Method A set of questions relevant to the subject of
inquiry are mailed to a selected list of persons with a request to return them duly
filled in. However in Bathinda AWAN was used for collection of data from Suratgarh.
(d) Telephone Interview This method of collecting information consists in
contacting respondents on telephone itself. Data from outside vendors and some of
the units was collected using telephone interview technique.
Designing A Questionnaire
18. A questionnaire is a Performa containing a sequence of questions to elicit
information from the interviewees. It is used for personnel interview. The questionnaire is
the heart of the primary data collection data technique. A questionnaire is set to posses
following three main aspects:
(a) The General Form The form of a questionnaire will depend partially on the
type of data and partly on the collection method.
(b) The Question Sequence It should be in the following sequence:-
(i) Introduction
(ii) Substantive information
(iii) Question vital to interview
(iv) Awkward Question
(c) The Question Wrong It has been stated that the question wording and
formulation are more of an art then a science. The wording of a question should be
impartial. Multiple choice questions constitute the basis of the structured questions
particularly in the mailed questionnaire.

9
19. After a deliberate interaction with the units and a detailed question answer session
all the required information was obtained. Following questions were asked from units to
derive the required information:-.
Q1. What all functions / events are being organized?
Q2. At what level these events are being organized?
Q3. What is the duration of event?
Q4. What is the frequency for conduct of these events?
Q5. How much manpower is involved in organizing the event?
Q6. How many no. of hours the manpower was employed?
Q7. What was the total no. of attendees?
Q8. What was the cost of organizing these events?
Q9. What all events have been outsourced?
Q10. What was the strategy for outsourcing?
Q11. Was the event organized in-house or was it outsourced?
Q12. How was the scaling done?
Q13. How was the issue of security handled, when all, and at what level?
20. To collect the data from all the units a brain storming session was done which
resulted in designing of a Questionnaire to finalize the events / functions organized by
various units at 10 Corps.. Thereafter by using different methods like observation, direct
interview etc the requisite data was compiled in a structured format to arrive at
standardization and analyses. The structured format is attached as appendix ‘B’.
21. Further to analyse a particular function for the total cost, a deliberate interaction
with the units along with a detailed question answer session having all the required
information was obtained. The following questions were asked from units to derive the
required information:-.
Q1. What all were the tasks?
Q2. Who was responsible for the conduct of the task?
Q3. How much manpower was utilized for the said conduct?
Q4. What category of manpower was utilized?
Q5. For what duration the manpower was utilized?
Q6. What was the cost per hour for the utilized manpower?

10
Q7. What was the cost of usage?
Q8. What all equipment was utilized?
Q9. How many of such equipment were used?
Q10. What was the cost per hour for the said equipment?
Q11. What was the cost of usage?
Q12. What all resources were utilized?
Q13. What was the cost per hour?
Q14. What is the cost of usage?
The format of the Questionnaire is placed at Appendix
Pretesting A Questionnaire
22. The pre test is a valuable indicator of the effectiveness of a questionnaire to collect
data. Pretesting consists in selecting, approaching and interviewing a small segment in the
same manner as to be followed in full scale operation and then analyzing results in the
light of the study
Editing of Primary Data
23. Editing involves reviewing the data collected by investigators to ensure maximum
accuracy and un-ambiguity. The different steps of editing are
(a) Checking eligibility
(b) Checking completeness.
(c) Checking consistency.
Techniques of Interview
24. The general qualities that an interviewer should posses can be identified as
extroversion, impartiality to different points of view, and friendliness without getting
personal ability to remain calm under many different circumstances, consciousness
perseverance, accuracy of reporting and adaptability.

11
A Sample Design
25. It is a definite plan for obtaining a sample from a given population. Sample size of
our project was 20 units.

12
CHAPTER 3
Analysis Of Data
26. The study was carried out at Military peace station Bathinda. A total of 40 units from
Bathinda and 12 units from Suratgarh were contacted for collection of data for organizing
events/ functions being held in Army. The Questionnaire was tested through a pilot study
of five units in the vicinity of project team office as sample over two days. The initial
Questionnaire is appended as Appendix ‘D’. The Questionnaire included the various
events organized for which units were tasked, the level at which they were held, its
duration, frequency per year, manpower involved in organizing for how many hours
catering to the number of attendees vis-à-vis the total manpower held in the unit, cost of
organizing, efforts required, security requirements, quality issues and the outsourcing that
was resorted to. Based on the inputs from the unit reps the Questionnaire was refined to
gather information with the duration, frequency and level of organizing functions, the total
strength of the unit vis-à-vis the strength involved in organising, their duration of
employment and the total number of attendees, cost of organizing the event, whether
outsourcing strategy adopted or not and organizing efforts both in-house and outsourced.
Based on the inputs from the pilot study, the Questionnaire was amended and redesigned
for the required information and data in the structured format. The amended Questionnaire
is appended as Appendix ‘B ’. Most of the data was collected through direct interview
method and direct observation method. However for data from Suratgarh, telephonic
interview method was adopted.
Modus Operandi
27. As per the data received from 20 units at Bathinda and 4 units from Suratgarh on
the various functions / events organized at different levels i.e. the data was collected for all
the events where a unit was involved with its frequency, manpower involvement, cost,
scaling and ranking of the attributes. The team also studied the New Year eve and the
AMC Corps Day that were held during their stay.
28. A total of 21 events were proposed by the various units that are being held in the
station. The list of proposed events is listed at Appendix ‘E’. The functions / events short
listed for the feasibility study were analysed for various attributes like security level, skills,
quality, expenditure etc. These attributes were now to be given a weightage with respect to
each other to gain an insight into the importance given to each attribute. The units were

now probed to find the weightages they would give to various attributes like security,
quality, manpower, skills etc and their minimum acceptable levels. Based on the inputs
received from the units, the weightages we
most hard pressed, 10% for in
for quality and 20% for expenditure. These attributes were graded from Very High to Very
Low for manpower and expenditure i
Skill and Quality issues, since high manpower and expenditure was undesirable while the
others were desirable. Now this
manpower very high would be scaled at 5, high at 4, medium at 3, low at 2 and very low at
1. On discussion with the units the minimum acceptable level of these attributes was fixed
at High for security and skill and
These values lead us to get a weighted average for the events deduced by
scale) ÷ No of attributes. From the same equation the minimum acceptable weighted
average was calculated as (0.3x2+0.1x2+0.25x3+0.15x3+0.2x3)/5=
29. With this as a benchmark, the total number of events that were now available for
the study got reduced to 17. Of these
issues like the manpower, skill and cost to
of prime concern. Finally, a total of 13 events were studied for outsourcing at Unit/
Brigade/ Division/ Corps/ level for various parameters on a matrix with
organizing and scaling.
0
0.2
0.4
0.6
0.8
RepublicDay
ArmyDay
AWWAMela
Barakhana
CorpsDay
UnitRaisingDay
0.52
13
received from the units, the weightages were fixed at 30% for security issues being the
most hard pressed, 10% for in-house skills required, 25% for manpower involvement, 15%
Low for manpower and expenditure issues and from Very Low to Very High for Security,
others were desirable. Now this grading was scaled from 5 to 1 in that order e.g. in case of
be scaled at 5, high at 4, medium at 3, low at 2 and very low at
igh for security and skill and Medium for manpower, quality and expenditure issues.
s lead us to get a weighted average for the events deduced by
. From the same equation the minimum acceptable weighted
(0.3x2+0.1x2+0.25x3+0.15x3+0.2x3)/5=0.52.
benchmark, the total number of events that were now available for
the study got reduced to 17. Of these, 4 events were not to be considered
ssues like the manpower, skill and cost to exchequer being low and security issues being
rn. Finally, a total of 13 events were studied for outsourcing at Unit/
Brigade/ Division/ Corps/ level for various parameters on a matrix with frequency
UnitRaisingDay
SocialEve
Holi
DiwaliMela
LadiesMeet
FmnLevel…
IndependenceDay
NewYrEve…
ESMRally
ReligiousFn
SchoolFunction
VIPVisits
GolfTouramnet
re fixed at 30% for security issues being the
house skills required, 25% for manpower involvement, 15%
ssues and from Very Low to Very High for Security,
rading was scaled from 5 to 1 in that order e.g. in case of
be scaled at 5, high at 4, medium at 3, low at 2 and very low at
edium for manpower, quality and expenditure issues.
s lead us to get a weighted average for the events deduced by ∑(weightage ×
. From the same equation the minimum acceptable weighted
.
benchmark, the total number of events that were now available for
4 events were not to be considered because of
being low and security issues being
rn. Finally, a total of 13 events were studied for outsourcing at Unit/
frequency, level of
GolfTouramnet
WarVeterans
VeerNari

14
30. Once the weightages were fixed for each attribute, a scale for the attribute was
formulated. In this case, a scale of 1 - 5 quantitatively, for a qualitative measure of Very
Low to Very High scaled to give a corresponding quantified scale. These scales when
collated for a weighted average gave a relative grading in order to gain an insight into
which all events shall be suited for outsourcing as a whole.
31. A cut off weighted average was then fixed for suitability of outsourcing of the event
with the minimum acceptable limits of the attribute fixed at Medium for security issues,
manpower involvement, quality & expenditure and high for in house skills. With these
ratings as the standard minimum and the weightage given to all attributes the minimum
acceptable weighted average comes to 0.52.
Short listing of Events
32. With the acceptable minimum weighted average of 0.52, all events with an average
rating of 0.52 and above were shortlisted for study on feasibility for outsourcing. A further
check was now carried out to rule out any ambiguity e.g. for a VIP visit the weighted
average suggests a possibility of outsourcing but due to security issues ought to be ruled
out. Again, it may so happen that an event deemed unsuitable for outsourcing may have
possibility of some parts to be outsourced.
Costing
33. Once the events to be studied were finalized, a study on the costs incurred was
carried out. These costs include the cost to the state for the manpower utilized, the
equipment used and miscellaneous expenditure apart from the cost of the outsourced
items. It may also be noted here that this cost to the state in terms of manpower and
equipment used does not include the effects of non availability of this manpower and
equipment to the outfit for the purpose it was meant for.
Manpower Cost
34. To calculate the cost of manpower we assume that an average OR has a salary of
Rs 18,000.If he was paid for 30 days and 10 hours per day, his per hour cost would be Rs
18,000÷300= Rs 60 per hour. Similarly the cost per hour of a JCO assuming average
salary as Rs 25,000 works out to Rs 83 per hour and that of an Officer assuming average
salary as Rs 50,000 would be Rs 167 per hour.

15
Equipment Usage Cost
35. The equipment usage cost was worked on two parameters, the first being based on
the life expectancy of the equipment and the other on the fuel consumed by the
equipment. In case of a motorcycle the average life is 5 yrs, taking the cost of motorcycle
as Rs 50,000 the per hour cost based on 10 hours of average run would be Rs
(50,000)÷(5×12×30×10) =Rs 2.78. The motorcycle running cost is now calculated based
on an average mileage of 30 Kms per Litre, a motorcycle running around 30 Kms in an
hour and the rate of Petrol at Rs 50 per litre. The running cost per hour was then
calculated as (30)÷(30×50)=Rs 50. The total usage cost then being Rs (50 + 2.78) =Rs
52.78 per hour. Similarly, for a Jeep or Gypsy assuming procurement cost as Rs 4,00,000
and life expectancy of 7 years and mileage of 12 Kms per litre the cost of usage per hour
would be Rs 140.87. That of a 2.5 Ton or ALS assuming the procurement cost as Rs
8,00,000 and life expectancy as 10 Years, the rate of Diesel as Rs 35 per litre and mileage
8 Kms per litre would be Rs 153.47. The per hour cost of a 30 KVA generator assuming
procurement cost as Rs 10,00,000 and life expectancy of 7 years consuming 4 litres of
diesel an hour would be Rs 179.68.
36. For equipments like computer etc the computation was simply based on the life
expectancy, usage in hours per day and the procurement cost keeping other factors like
electricity charges as negligible. The costs of usage for these items are shown accordingly
in the table below:
S. No Equipment Life
(in months)
Cost of
procurement
Usage in
hour
Usage
Cost
a Computer 60 50,000 10 2.78
b Printer 60 10,000 10 0.56
c 4 mtr tent 72 1,20,000 24 5.56
d 2 mtr tent 72 60,000 24 2.78
e laptop 60 50,000 10 2.78
f Tables 60 2,000 10 0.11
g Chairs 60 500 10 0.03

h Sigri
J Crockery
k Cutlery
l Bar Counter
m Camera
n Handycam
37. In case of papers and cartridge for invitations, circulars and other office work the
cost of one sheet when one ream of 500 sheets costs Rs 225 would be Rs 0.45. The cost
of usage of cartridge with the procurement cost of Rs 4,000 and ability to print approx
2,000 prints would be Rs 2 per sheet. The printing cost would then work out to Rs 2.78.
Unit Wise Event Analysis
38. 3 DOGRA
39. The total manpower held with the unit is 855. The unit is not involved in organizing
Corps Day, School function, Golf Tournament, War
When we see the manpower involved and the manpower attending the rest of the
functions with the cost involved the following was observed
1
10
100
1000
10000
100000
RepublicDay
ArmyDay
AWWAMela
Total Manpower
16
120 2,000 10
120 100 2
120 100 2
120 2,000 6
72 15,000 5
72 40,000 5
In case of papers and cartridge for invitations, circulars and other office work the
usage of cartridge with the procurement cost of Rs 4,000 and ability to print approx
Unit Wise Event Analysis
The total manpower held with the unit is 855. The unit is not involved in organizing
Corps Day, School function, Golf Tournament, War Veterans and the Veer Nari functions.
ns with the cost involved the following was observed :-
AWWAMela
Barakhana
CorpsDay
UnitRaisingDay
MonthlySocialEve
Holi
DiwaliMela
LadiesMeet
FmnlevelSportsFn
IndependenceDay
NewYrEve
ESMRally
ReligiousFn
SchoolFn
VIPVisit
GolfTournament
WarVeteran
VeerNariTotal Manpower Manpower Attended Manpower Involved
0.06
0.01
0.00
0.06
0.69
1.85
In case of papers and cartridge for invitations, circulars and other office work the
usage of cartridge with the procurement cost of Rs 4,000 and ability to print approx
The total manpower held with the unit is 855. The unit is not involved in organizing
eterans and the Veer Nari functions.
Manpower Involved Cost

17
(a) Republic Day The manpower involved is 5 for the event, for a total of
attendees being 40 and the cost incurred in organizing is Rs 2,500/-.
(b) Army Day The manpower involved is 10 for the event, for a total of
attendees being 100 and the cost incurred in organizing is Rs nil.
(c) AWWA Mela The manpower involved is 23 for the event, for a total of
(d) Barakhana The manpower involved is 60 for the event, for a total of
(e) Unit Raising Day The manpower involved is 100 for the event, for a total
of attendees being 700 and the cost incurred in organizing is Rs 1,10,000/-.
(f) Monthly Social Eve The manpower involved is 8 for the event, for a total of
(g) Holi The manpower involved is 10 for the event, for a total of attendees
being 600 and the cost incurred in organizing is Rs 1,000/-.
(h) Diwali Mela The manpower involved is 20 for the event, for a total of
attendees being 500 and the cost incurred in organizing is Rs 500/-.
(j) Ladies Meet The manpower involved is 10 for the event, for a total of
(k) Formation Level Sports Function The manpower involved is 20 for the
event, for a total of attendees being 400 and the cost incurred in organizing is Rs
3,500/-.
(l) Independence Day The manpower involved is 8 for the event, for a total of
(m) New Year Eve The manpower involved is 30 for the event, for a total of
(n) Ex Service Men Rally The manpower involved is 10 for the event, for a total
of attendees being 800 and the cost incurred in organizing is Rs nil.
(o) Religious Function The manpower involved is 10 for the event, for a total of

(p) VIP Visit The manpower involved is 30 for the event, for a total of attendees
being 500 and the cost incurred in organizing is
7010 EME BN
40. The total manpower held with the unit is 400. The unit is not involved in
Day and the Veer Nari functions. When we see the manpower involved and the
manpower attending the rest of the function with the cost involved for all the functions the
following was observed:
(a) Republic Day The
attendees being 55 and the cost incurred in organizing
(b) Army Day The
(c) AWWA Mela The manpower involved is 6 for the event, for a total of
attendees being 2,000 and the cost incurred in organizing
(d) Barakhana The manpower involved is 15 for the event, for a total of
1
10
100
1000
10000
100000
1000000
Republic…
ArmyDay
AWWA…
Barakha…
CorpsDay
Unit…
18
manpower involved is 30 for the event, for a total of attendees
being 500 and the cost incurred in organizing is Rs 1,500/-.
The total manpower held with the unit is 400. The unit is not involved in
and the Veer Nari functions. When we see the manpower involved and the
The manpower involved is 15 for the event, for a
attendees being 55 and the cost incurred in organizing Rs 3,000/-.
The manpower involved is 20 for the event, for a total of
attendees being 250 and the cost incurred in organizing Rs 10,000/
attendees being 2,000 and the cost incurred in organizing Rs 70,000/
attendees being 500 and the cost incurred in organizing Rs 30,000/
Monthly…
Holi
Diwali…
Ladies…
Fmn…
Indepen…
NewYr…
ESMRally
Religiou…
SchoolFn
VIPVisit
Golf…
War…
VeerNari
manpower involved is 30 for the event, for a total of attendees
The total manpower held with the unit is 400. The unit is not involved in Unit raising
and the Veer Nari functions. When we see the manpower involved and the
manpower involved is 15 for the event, for a total of
.
manpower involved is 20 for the event, for a total of
s 10,000/-.
s 70,000/-.
s 30,000/-.
VeerNari
Total
Manpower

19
(e) Corps Day The manpower involved is 60 for the event, for a total of
(f) Monthly Social Eve The manpower involved is 10 for the event, for a total of
(g) Holi The manpower involved is 20 for the event, for a total of attendees
being 1,200 and the cost incurred in organizing is is Rs 25,000/-.
(h) Diwali Mela The manpower involved is 6 for the event, for a total of
(j) Ladies Meet The manpower involved is 5 for the event, for a total of
attendees being 50 and the cost incurred in organizing is is Rs 500/-.
(k) Formation Level Sports Function The manpower involved is 6 for the
event, for a total of attendees being 55 and the cost incurred in organizing is Rs
3,000/-.
(l) Independence Day The manpower involved is 50 for the event, for a total of
attendees being 700 and the cost incurred in organizing is Rs 2,00,000/-.
(m) New Year Eve The manpower involved is 10 for the event, for a total of
attendees being 200 and the cost incurred in organizing is is Rs 4,000/-.
(n) Ex Service Man Rally The manpower involved is 4 for the event, for a
total of attendees being 100 and the cost incurred in organizing is Rs 1,000/-.
(o) Religious Function The manpower involved is 10 for the event, for a total of
(p) School Function The manpower involved is 30 for the event, for a total of
(q) VIP Visit The manpower involved is 20 for the event, for a total of attendees
being 50 and the cost incurred in organizing Rs is 10,000/-.
(r) Golf Tournament The manpower involved is 10 for the event, for a total of
(s) War Veteran The manpower involved is 10 for the event, for a total of

20
CHAPTER 4
OBSERVATION & FINDINGS
Observations
41. A Pilot survey of five units was initially carried out to list out the functions being
conducted at Bathinda Military Station by various units. Considering the merits and
appropriateness of functions vis-à-vis the directives of the project study, a total of 20
functions were shortlisted for analysis (List attached as Appendix ‘D’). Data was collected,
collated & further analysed based on the Questionnaire attached as Appendix ‘B’ for 24
units of Bathinda & Suratgarh Military Station.
42. The data was analysed for each of the 20 functions conducted by the units based
on the total manpower, attendance, involvement of manpower and the cost incurred. As
explained in the previous chapters the weighted average was derived and events with
weighted average of more than 0.52 were recommended for outsourcing. Based on this
analysis, 17 functions were shortlisted for outsourcing; however, only 13 functions were
recommended based on the parameters like security, manpower involvement, skills
required etc attached as per Appendix ‘F’. The other functions are recommended to be
partially outsourced at the discretion of the decision making authority considering the
merits of organizing in-house vis-s-vis outsourcing.
Cost to Exchequer
43. Cost to exchequer should not be evaluated in terms of money only but a holistic
view in terms of multiple factors adding to the cost should be considered. In the present
scenario, the organization of functions and events especially in the peace stations
consume majority of in-house resources (The resources which are readily available with
the organisation in terms of manpower, equipment, time, miscellaneous resources etc).
But the real issue is that, are these resources held with the units for supporting the
organisation of functions and events? And if not then what are they meant for?
44. The Question is that, is there any need to identify the purpose of these resources
held with the units? Army is well aware of the purpose and utility of these resources and is
very clear that the utilization of these resources in organising functions and events is
taking a toll both in terms of fatigue and time. May be fatigue can be answered with due

21
course of time but the lost time will definitely have major ramifications in future and may
even result in lost battles.
45. Its time to search for alternative methods to avoid redirection of internal resources
held with units not meant for organizing functions & events. In the present scenario this
could be best addressed by adopting outsourcing in peace stations. Let Army do the best
at what it is specialised at and leave the issue of organizing functions to the outsourcing
agencies at which they are best without jeopardizing or compromising with the security
standards and legacy of Army traditions.
Strategic Reasons for Outsourcing:
(a) Improve focus on ones primary job & core issues.
(b) Gain access to best capabilities & accelerate benefits
(c) Share risks and redirect resources to more strategic activities.
Tactical Reasons for Outsourcing:
(a) One time applications & reduced/controlled operating cost.
(b) Secure internal resources and save money.
(c) Outsourcing gives flexibility and means to access expertise not otherwise
available.
(d) Improved satisfaction as a customer & access to larger pool of
competencies.
46. From the above, it is clear that the low core competence & low internal expertise
jobs is done best by being outsourced and in case of India Army, organisation of functions
INHOUSE
OUTSOURCE
HIGH
LOW
HIGHLOW Core competence
Internal competence

22
and events assumes low competence & low expertise jobs and hence best addressed by
outsourcing.
47. With frequent turnover of units, manpower and men assuming different
appointments over a period of time, it will be a wise decision to specialize in outsourcing
than specialize in organizing functions as it is less manpower & equipment intensive and a
well documented approach will result in banking the data related to outsourcing than “skill
banking” of skills which is dynamic and moreover never existed or men trained for. Trends
above indicate that as the size and nature of function increases, the infrastructure for org a
function reaches saturation (constant) and it’s only the cost incurred on the strength of
attendees increases which is not exponential but linear in nature.
Proposed System of Outsourcing
48. The project team based on the data collected and interactions with the unit has
developed a mathematical model and suggested that the events with a weighted average
of more than 0.52 should only be considered for outsourcing.
The recommendations are as under:
(a) 13 functions are recommended for outsourcing
(b) 4 events not recommended based on reasons explained in the above slides.
(c) An event with weighted average less than 0.52 can be considered for part
outsourcing.
49. After analyzing a sample of 3 functions, the project team has come to a conclusion
that an SOP to layout directions for outsourcing is not possible at this stage and there is a
separate study required to be undertaken for formulation of the same.
(a) Events Three functions were taken as sample functions based on the
frequency, scale and level of organisation of the function.
(i) New Year Eve.
(ii) Golf cup
(iii) Corps Day Function
(b) Vendor selection The project team evaluated the three functions viz New year
eve, Corps Day Mess function & Golf Tournament organized in house. With the aim

of evaluating the same functions being outsourced, a vendor survey was carried out
in Bathinda to locate the
with an aim to outsource the
(i) Basant Plaza
(ii) Fateh technologies (P) Ltd
(iii) Guru Nanak Tent House
50. The firms were approached by the team and the c
and quotations were taken for standard costs based on which the same functions were
analysed for outsourcing.
Data Analysis of New year eve function
51. New Year Eve Approx strength
studied in detail, New year function was the biggest scale in respect of expenditure, usage
of resources & number of attendees.
In-house Organisation
52. A detailed on the spot study of the fun
collected was collated and analysed. The data in respect of the new year
attached as Annexure___ to Appendix
53. When organized in-house the cost & usage of resources was collated and
as shown in pie chart above. From the above, it is seen that the manpower component of
total expenditure is 27%, Equipment
usage component is 6% & outsourcing component is 66%. It is seen that a major p
the function is already outsourced however the effectiveness of the present strategy is
outsource
66%
FUNCTION : NEW YEAR EVE (INHOUSE)
Manpower
23
in Bathinda to locate the event management firms and the following were shortlisted
with an aim to outsource the functions:
(ii) Fateh technologies (P) Ltd
(iii) Guru Nanak Tent House
The firms were approached by the team and the complete details were discussed
uotations were taken for standard costs based on which the same functions were
of New year eve function
strength of attendees is 500.Out of the three
of resources & number of attendees. Approx number of attendees was 500 in this function.
A detailed on the spot study of the function was carried out in detail and the data
Appendix____.
house the cost & usage of resources was collated and
, Equipment usage component is 1%, Miscellaneous resource
usage component is 6% & outsourcing component is 66%. It is seen that a major p
Manpower
27%
Eqpt
1%
Misc
6%
outsource
66%
FUNCTION : NEW YEAR EVE (INHOUSE)
Manpower Eqpt Misc outsource
vent management firms and the following were shortlisted
omplete details were discussed
uotations were taken for standard costs based on which the same functions were
.Out of the three functions
500 in this function.
ction was carried out in detail and the data
collected was collated and analysed. The data in respect of the new year function is
.
house the cost & usage of resources was collated and plotted
Miscellaneous resource
usage component is 6% & outsourcing component is 66%. It is seen that a major portion of

compared later in the chapter. The actual cost of resources utilized for organizing the
function is enumerated below:
Outsourcing Strategy
54. The new year eve is an event which is
available in the market to organise such functions
outsourcing. The project team interacted with the vendors and developed the outsourcing
model for the same tasks & activities from the inputs taken from the market research. It
was that the majority of the activities could be ou
& traditional issues of the arm.
by army in conducting all such functions can be maintained by imposing couple of
supervisory staff along with the outsourc
55. The same function, when
and plotted as shown in pie chart above. From the above, it is seen that the manpower
component of total expenditure is only 9%
Miscellaneous resource usage component is decreased to 3% & outsourcing component
is increased to 87%. It is seen that a major portion of the function
however the effectiveness of the present strategy
Manpower
Category
Manpower
Equipment
Misc
Outsource
Grand Total
24
below:
The new year eve is an event which is universal in nature & lot of expertise is
available in the market to organise such functions. Hence this event has all the scope for
team interacted with the vendors and developed the outsourcing
was that the majority of the activities could be outsourced without jeopardising the security
& traditional issues of the arm. The requirement of quality standards generally displayed
supervisory staff along with the outsourcing expertise available in the market.
when outsourced, the cost & usage of resources was collated
component of total expenditure is only 9%, Equipment usage component is
resource usage component is decreased to 3% & outsourcing component
is increased to 87%. It is seen that a major portion of the function could be
however the effectiveness of the present strategy vis-à-vis in-house organisation will be
Manpower
9%
Eqpt
1% Misc
3%
outsource
87%
NEW YEAR EVE : OUTSOURCED
Total Cost
141883
7014.78
30112.68
350000
529010.46
lot of expertise is
event has all the scope for
team interacted with the vendors and developed the outsourcing
tsourced without jeopardising the security
requirement of quality standards generally displayed
ing expertise available in the market.
cost & usage of resources was collated
usage component is around 1%,
resource usage component is decreased to 3% & outsourcing component
could be outsourced
organisation will be
Misc
3%

25
explained later in the chapter. The cost of various resource usages once outsourced is
given below in the table:
56. The comparative analysis of in-house and outsourced organisation of new year eve
is given below:
When organized In-
house
When organized by
outsourcing
Increase/Decrease
in component
Actual
increase/decrease
Total Cost 5.29
lacs
Total Cost 4.02
lacs
- Decrease by 24%
Manpower
component of
total cost
27% Manpower
component
of total cost
9% Decrease by 18 % Decrease by 74%
Equipment
component of
total cost
1% Equipment
component
of total cost
1% No visible
increase/decrease
Decrease by 71%
Miscellaneous
component of
total cost
6% Misc
component
of total cost
3% Decrease by 3% Decrease by 57%
Outsourcing
component of
total cost
66% Outsourcing
component
of total cost
87% Increase by 21% -
Category Total Cost
Manpower 37058
Equipment 1594.7
Miscellaneous 12916.12
Outsource 350250
Grand Total 401818.82

57. Hence it is seen that by increasing the outsourcing component by 21%, the gains &
losses are as under:
Gains
Total Cost Decrease
Manpower Decrease
Equipment Decrease
Miscellaneous
resources
Decrease
58. From the above table it is seen that by outsourcing the function like new year eve
and other large scale functions it’s always a win
Data Analysis of Corps Day
59. Corps Day Mess function
functions studied in detail, Corps Day Mess function was the
usage of resources & number of attendees.
this function.
60. A detailed on the spot study of the function was carried out in detail and the data
attached as Annexure___ to Appendix
Outsource
CORPS DAY MESS FUNCTION : INHOUSE
Manpower
26
y increasing the outsourcing component by 21%, the gains &
Losses
Decrease by 24%
NILDecrease by 74%
Decrease by 71%
Decrease by 57%
From the above table it is seen that by outsourcing the function like new year eve
and other large scale functions it’s always a win-win situation for the Army.
ay Mess Function
Corps Day Mess function - Approx strength of attendees is 500. Out of the three
functions studied in detail, Corps Day Mess function was the medium scale
usage of resources & number of attendees. Approximate number of attendees was
Appendix____.
Manpower
20%
Eqpt
2%
Misc
24%
Outsource
54%
CORPS DAY MESS FUNCTION : INHOUSE
Manpower Eqpt Misc Outsource
y increasing the outsourcing component by 21%, the gains &
From the above table it is seen that by outsourcing the function like new year eve
win situation for the Army.
Out of the three
medium scale in respect of
Approximate number of attendees was 200 in
collected was collated and analysed. The data in respect of the new year function is

61. When organized in-house the cost & usage of resources was collated and plotted
usage component is 24% & outsourcing component is 54%. It is seen that about half of the
function is already outsourced however the effectiveness of the present strategy is
Category
Manpower
Equipment
Miscellaneous
Outsource
Grand Total
Outsourcing strategy
62. The Corps Day Mess
tasks which are more of an event management nature can definitely be outsourced and
expertise do exist in local markets to undertake the same at comparable cost and superior
expertise. Hence this event has all the scope for outsourcing. The proj
with the vendors and developed the outsourcing model for the same tasks & activities from
the inputs taken from the market research. It was
outsource
MESS FUNCTION : OUTSOURCED
Manpower
27
, Equipment usage component is 2%, Miscellaneous resource
mponent is 24% & outsourcing component is 54%. It is seen that about half of the
below:
Category Total cost
24364
3048
28832
65800
122043
ess Function is organised in every unit once a year but ceratin
are more of an event management nature can definitely be outsourced and
expertise. Hence this event has all the scope for outsourcing. The project
th the vendors and developed the outsourcing model for the same tasks & activities from
the inputs taken from the market research. It was seen that the majority of the activities
Manpower
2%
Eqpt
0%
Misc
13%
outsource
85%
MESS FUNCTION : OUTSOURCED
Miscellaneous resource
mponent is 24% & outsourcing component is 54%. It is seen that about half of the
Total cost
122043
unction is organised in every unit once a year but ceratin
are more of an event management nature can definitely be outsourced and
ect team interacted
th the vendors and developed the outsourcing model for the same tasks & activities from
that the majority of the activities
Misc
13%

28
could be outsourced with out jeopardising the security & traditional issues of the army.
The requirement of quality standards generally displayed by the Army in conducting all
such functions can be maintained by imposing couple of supervisory staff along with the
outsourcing expertise available in the market.
63. The same function, when outsourced, the cost & usage of resources was collated
component of total expenditure is only 2%, Equipment usage component is almost nil,
Miscellaneous resource usage component is decreased to 13% & outsourcing component
is increased to 85%. It is seen that a major portion of the function could be outsourced
however the effectiveness of the present strategy vis-à-vis in-house organisation will be
explained later in the chapter. The cost of various resource usages once outsourced is
given below in the table:
64. The comparative analysis of in-house and outsourced organisation of Corps Day
Mess Function is given below:
When organize In-
house
When organized by
outsourcing
Increase/Decrease
in component
Actual
increase/decrease
Total Cost 1.22
lacs
Total Cost 1.5 lacs - Increase by 23%
Manpower
component
of total cost
20% Manpower
component
of total cost
2 % Decrease by 18 % Decrease by
87.5%
Equipment
component
of total cost
2% Equipment
component
of total cost
Category Total Cost
Manpower 2512
Equipment 153
Miscellaneous 20342
Outsource 127250
Grand Total 150258

29
Misc
component
of total cost
24% Misc
component
of total cost
13% Decrease by 11% Decrease by 31%
Outsourcing
component
of total cost
54% Outsourcing
component
of total cost
65. It is seen that by increasing the outsourcing component by 31%, the gains & losses
are as under:
gains Losses
Total Cost -
Increase by 23 %
Manpower Decrease by
87.5%
NIL
Equipment Decrease by 95%
Miscellaneous
resources
Decrease by 31%
66. From the above it can be seen that an additional expenditure of 23% will have a
major savings in terms of manpower, equipment and miscellaneous resources. But the
decision to accept that internal resources do cost money will turn the tables in favour of
outsourcing such medium scale functions. The decision making authority has to decide the
tradeoff between usage of in-house resources and additional cost.
Data Analysis of Golf Tournament
67. Golf tournament - Approx strength of attendees is 100. Out of the three functions
studied in detail, Golf tournament was of smallest scale in respect of number of attendees.
Approx number of attendees was 100 in this function.

68. A detailed on the spot study of the function was carried
collected was collated and analysed. The data in respect of the
Annexure___ to Appendix____.
69. When organized in-house the cost & usage of resources was collated and plotted
usage component is 28% & outsourcing component is 19%. It is seen that about 1/5
the function is only outsourced however the effectiveness of the present strategy is
GOLF TOURNAMENT : INHOUSE
Manpower
Category
Manpower
Equipment
Miscellaneous
Outsource
Grand total
30
collected was collated and analysed. The data in respect of the function is
____.
ve. From the above, it is seen that the manpower component of
, Equipment usage component is 4%, Miscellaneous
usage component is 28% & outsourcing component is 19%. It is seen that about 1/5
below:
Manpower, 49%
4%
28%
19%
GOLF TOURNAMENT : INHOUSE
Category Total Cost
49489.2822
177195.782
out in detail and the data
function is attached as
ve. From the above, it is seen that the manpower component of
ellaneous resource
usage component is 28% & outsourcing component is 19%. It is seen that about 1/5th
of
87653.5
7052
49489.2822
33001
177195.782

Outsourcing Strategy
70. The Golf tournament is organised in every
are more of an event management nature can definitely be outsourced and expertise do
exist in local markets to undertake the same at comparable cost and superior expertise.
Hence this event has all the scope for outsourcing. The pr
vendors and developed the outsourcing model for the same tasks & activities from the
inputs taken from the market research. It was seen that the majority of the activities could
be outsourced with out jeopardising the securit
requirement of quality standards generally displayed by
functions can be maintained by imposing couple of supervisory staff along with the
outsourcing expertise available in the marke
71. The same function, when outsourced
and plotted as shown in pie chart
manpower component of total expenditure is only
only 1%, Miscellaneous resource
component is increased to 73
outsourced however the effectiveness of the present strategy vis
organisation will be explained later in the chapter. The cost of various resource
once outsourced is given below in the
GOLF TOURNAMENT : OUTSOURCED
Manpower
Category
Manpower
Equipment
Miscellaneous
Outsource
Grand total
31
is organised in every station frequently but ceratin tasks which
this event has all the scope for outsourcing. The project team interacted with the
be outsourced with out jeopardising the security & traditional issues of the
requirement of quality standards generally displayed by the Army in conducting all such
outsourcing expertise available in the market.
The same function, when outsourced, the cost & usage of resources was collated
and plotted as shown in pie chart on previous page. From the above, it is seen that the
manpower component of total expenditure is only 18%, Equipment usage component is
Miscellaneous resource usage component is decreased to 8
73%. It is seen that a major portion of the function could be
outsourced however the effectiveness of the present strategy vis
ation will be explained later in the chapter. The cost of various resource
once outsourced is given below in the table:
Manpower
18%
Eqpt
1%Misc
8%
outsource
73%
GOLF TOURNAMENT : OUTSOURCED
Total Cost
but ceratin tasks which
team interacted with the
y & traditional issues of the Army. The
rmy in conducting all such
cost & usage of resources was collated
From the above, it is seen that the
usage component is
8% & outsourcing
%. It is seen that a major portion of the function could be
outsourced however the effectiveness of the present strategy vis-à-vis in-house
ation will be explained later in the chapter. The cost of various resource usages
40569
3338
17035
162664
223605

32
72. The comparative analysis of in-house and outsourced organisation of Corps Day
Mess Function is given below:
When organised In-
house
When organised by
outsourcing
Increase/Decre
ase in
component
Actual
increase/decrease
Total Cost 1.77
lacs
Total Cost 2.24
lacs
- Increase by 27%
Manpower
component of
total cost
49% Manpower
component of
total cost
18 % Decrease by 18
%
Decrease by 53%
Equipment
component of
total cost
4% Equipment
component of
total cost
Miscellaneous
component of
total cost
28% Miscellaneous
component of
total cost
8% Decrease by
11%
Decrease by 65%
Outsourcing
component of
total cost
19% Outsourcing
component of
total cost

33
73. It is seen that by increasing the outsourcing component by 54%, the gains & losses
are:
Gains Losses
Total Cost -
Increase by 27 %
Manpower Decrease by 53%
NILEquipment Decrease by 57%
Miscellaneous
resources
Decrease by 65%
74. From the above it can be seen that an additional expenditure of 23% will have a
major savings in terms of manpower, equipment and miscellaneous resources. But the
decision to accept that internal resources do cost money will turn the tables in favour of
outsourcing such medium scale functions. The decision making authority has to decide the
trade of between usage of in-house resources and additional cost.
75. Trend Analysis of All three functions
Action/Attendees
of Function
100 200 500 Trends
Outsourcing
decision adopted
in present
scenario
19% 54% 66% It is seen that the larger the
scale of function, more
outsourcing is being adopted
knowingly or unknowingly.
Scope of
improvement in
outsourcing
(Optimum scale
feasible)
54% 31% 21% The trend shows that the
lower the scale of function,
more scope of outsourcing.

34
Maximum
Outsourcing
feasible without
compromising
security &
traditional aspects
73% 85% 87% The saturation is seen
when outsourcing
component > 85%. The cost
of outsourcing the function
will rise exponentially for a
marginal increase in
outsourcing component.
Hence it can be safely
assumed that the scope of
outsourcing should be
around 70-85% of total cost
of function for optimum
mix of internal resources &
outsourcing strategy.
Effect on overall cost
When adopting
the optimum
outsourcing
strategy, the
effect on overall
cost
Increase
by 27%
Increase
by 23%
Decrease by
24%
When outsourcing strategy
adopted based on the
strength of attendees (Scale
of function) between 70-85%,
the breakeven point occurs at
around strength of 450 and
bigger the scale of function,
the optimum outsourcing
between 70-85% will yield
max profitability in terms of
overall cost.
Outsourcing in optimum range (70-85%) and its effect on following
Manpower
Component of
total cost
Decrease
31%
Decrease
18%
Decrease
18%
If outsourcing adopted
between 70-85% then
manpower saving will be in

35
Manpower saving
cost vis-à-vis in-
house strategy
53% 87.5% 74% the range of 85-70% for
functions with strength > 200
plus. Stagnation occurs for
large scale functions at 70%.
In the present scenario 70-
85% manpower saving is
possible. Optimum mix of
outsourcing & internal
resources in the range of
70/30 to 85/15 ranging from
large to small scale function
will yield the desired results
of manpower saving.
Equipment
Component of
total cost
Decrease
3%
Decrease
2%
0%(Negligible
change)
If outsourcing adopted
between 70-85% the
equipment saving between
50-90% is possible though
the component in the total
cost is very less.Equipment Saving
cost vis-à-vis in-
house strategy
57% 95% 71%
Miscellaneous
Component of
total cost
Decrease
20%
Decrease
11%
Decrease 3% With similar strategy,
Miscellaneous expenses in
the range of 30-60% can be
saved.
Miscellaneous
Saving cost vis-à-
vis in-house
strategy
65% 31% 57%

36
Resource Cost Comparison Of New Year Eve Function
76. The comparison of organisation of new year eve function conducted inhouse V/S
outhouse has been plotted with resources ( Manpower, Equipment, Miscellaneous
resources, Outsourcing component of total cost and overall cost of the function) has been
plotted on X-axis and cost incurred on Y-axis. In this graph, the outsourcing curve runs
below the inhouse curve throughout giving an impression that cost of outsourcing is
always less than the effort of organising inhouse. Yes, that is partly true but these
resources have to studied independentently for the decision maker to arrive at the best
optimum solution. These trends have been explained later in the chapter.
Manpower Eqpt Misc outsource Grand Total
inhouse 1.42 0.07 0.30 3.50 5.29
outsource 0.37 0.02 0.13 3.50 4.02
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Cost(Lacs) Resource Cost Comparison : Inhouse Vs outsource
y = 1.1172x - 1.2357
R² = 0.6255
y = 1.0782x - 1.6273
R² = 0.7427
-2.00
0.00
2.00
4.00
6.00
8.00
10.00
0 2 4 6 8 10
Cost
Resources
Trendlines : Inhouse vs Outsourcing
inhouse
outsource
Linear (inhouse)
Linear (outsource)

37
77. The trend lines plotted for the same function organised inhouse & outsourced has
been plotted in the graph above. Regression analysis has been used to plot the trends.
The trends have been plotted linearly, where the prediction upto 900 attendees have been
made and the trend lines show a distinct charecteristic that outsourcing is always more
economical than the effort of organising event inhouse. Though true for this case, the trend
lines have to be studied for each resource independently to arrive at a generalised
conclusion.
Resource Cost Comparison of Corps Day Mess Function
78. The comparison of organisation of Corps Day Mess Function conducted inhouse Vs
outhouse has been plotted with resources ( Manpower, Eqpt, Misc resources, Outsourcing
component of total cost and overall cost of the function) has been plotted on X-axis and
cost incurred on Y-axis. In this graph, the outsourcing curve runs below the inhouse curve
till the usage of misc resouces then the outsoucing cost increases at a rapid rate thus
increasing the overall cost of conducting the function giving an impression that cost of
outsourcing is always more than the effort of organising inhouse. Yes, that is partly true
but these resources have to studied independentently for the decision maker to arrive at
the best optimum solution. These trends have been explained later in the chapter.
inhouse 0.24 0.03 0.29 0.66 1.22
outsource 0.03 0.00 0.20 1.27 1.50
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
Cost(Lacs)
Resource Cost Comparison : Inhouse Vs outsource

38
79. The trend lines plotted for the same mess function organised inhouse & outsourced
has been plotted in the graph above. Regression analysis has been used to plot the
trends. The trends have been plotted linearly, where the prediction upto 900 attendees
have been made and the trend lines show a distinct charecteristic that outsourcing is not
economical and cost saving can be achieved by organising event inhouse. Though true for
this case, the trend lines have to be studied for each resource independently to arrive at a
general conclusion.
Resource Cost Comparison of Golf tournament
y = 0.2581x - 0.2862
R² = 0.762
y = 0.4226x - 0.6667
R² = 0.8452
-0.50
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
0 2 4 6 8 10
Cost
Resources
inhouse
outsource
Linear (inhouse)
Linear (outsource)

39
80. The comparison of organisation of golf tournament conducted inhouse Vs
outsource has been plotted with resources ( Manpower, Equipment, Miscellaneous
resources, Outsourcing component of total cost and overall cost of the function) on X-axis
and cost incurred on Y-axis. In this graph, the outsourcing curve runs below the inhouse
curve till the usage of misc resouces then the outsoucing cost increases at a rapid rate
thus increasing the overall cost of conducting the function giving an impression that cost of
outsourcing is always more than the effort of organising inhouse. Yes, that is partly true
but these resources have to studied independentently for the decision maker to arrive at
the best optimum solution. These trends have been explained later in the chapter.
inhouse 0.88 0.07 0.49 0.33 1.77
outsource 0.41 0.03 0.17 1.63 2.24
0.00
0.50
1.00
1.50
2.00
2.50
Cost(Lacs)
Resource Cost Comparison : Inhouse Vs outsource
y = 0.205x + 0.0937
R² = 0.2395
y = 0.5254x - 0.6818
R² = 0.7187
-0.50
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
0 2 4 6 8 10
Cost
Resoources
inhouse
outsource
Linear (inhouse)
Linear (inhouse)

40
81. The trend lines plotted for the same function organised inhouse & outsourced has
been plotted in the graph above. Regression analysis has been used to plot the trends.
The trends have been plotted linearly, where the prediction upto 900 attendees have been
made and the trend lines show a distinct charecteristic that outsourcing is not economical
and cost saving can be achieved by organising event inhouse. Though true for this case,
the trend lines have to be studied for each resource independently to arrive at a general
conclusion.
Trend Analysis of Individual components, resources & Cost
82. A total of three functions viz New Year Eve organised by Corps HQ, Corps Day
Function organised by 174 MH & Golf tournament organized by 7010 EME Battalion was
selected for analysis due to paucity of time and limited nature of project study. Out of three
functions, two functions viz New Year Eve and Corps Day function was monitored from
start to end physically and all aspects of organisation by the units were studied in detail
and data collected. the analysis and data collection of golf tournament was done through
detailed Questionnaire and interview methods. The data collected was collated and
organized into various categories mainly affecting the organization of a function. The main
sub sections are manpower usage in organizing the function, equipment usage,
miscellaneous resources used, outsourcing component and total cost of organizing these
functions. These parameters have been studied for both in-house organised functions and
for outsourcing the same function in optimum manner. To obtain the outsourcing
component, the project team visited reputed vendors who have a vast expertise in event
management and best in the Bathinda city.
83. One more parameter of selecting these three functions is the strength of attendees
in each function. Golf Tournament (100), Corps Day function (200) & New Year Eve (500)
were selected due to the range from 100 to 500 which will best represent the maximum
number of functions falling in this category. The trends of each parameter have been
plotted as under:

41
Overall Cost
84. When regression analysis is used to predict the overall cost of function between
500-1000 attendees based on the data from above three functions it is seen that the slope
of outsoucing option (0.0054) is less than the inhouse option (0.0099). Hence the trend
shows that the break even occurs when the str of attendees is approx 250 +. Once the str
of any function breaches 250 +, the overall cost of inhouse organising increases at a rate
more than that of outsourcing option. It can be safely assumed with a safety margin of
20% (Being initial study) that when the strength of attendees is more that 300, the cost of
outsourcing will be less than organising it inhouse and the same trend is seen till 1000
attendees and will definitely follow the same further. But, a better trend can be plotted with
more sample size (presently 3) as the regression constant R2
will tend towards 1.
y = 0.0099x + 0.12
R² = 0.871
y = 0.0054x + 1.1569
R² = 0.7425
0.00
2.00
4.00
6.00
8.00
10.00
12.00
0 200 400 600 800 1000 1200
Trend Analysis : Overall Cost
inhouse
outsource
Linear (inhouse)
Linear (outsource)
Attendees In-house Outsource
100 1.77 2.24
200 1.22 1.50
500 5.29 4.02

42
Manpower Usage
85. When regression analysis is used to predict the manpower usage in organising
function between 500-1000 attendees based on the data from above three functions it is
seen that the slope of outsoucing option (0.0002) is less than the inhouse option (0.0019).
Hence the trend shows that the cost of manpower usage is always less in outsourcing and
as the strength increase, the rate of increase in organising inhouse is more than
outsourcing. Hence it is prudent to outsource the function based on the manpower usage
aspect But, a better trend can be plotted with more sample size (presently 3) as the
regression constant R2
y = 0.0019x + 0.3277
R² = 0.4704
y = 0.0002x + 0.2208
R² = 0.0339
0.00
0.50
1.00
1.50
2.00
2.50
0 200 400 600 800 1000 1200
Trend Analysis : Manpower Usage
inhouse
outsource
Linear (inhouse)
Linear (outsource)
100 0.88 0.41
200 0.24 0.03
500 1.42 0.37

43
Misc Resource Usage
86. When regression analysis is used to predict the Miscellaneous resource usage in
organising function between 100-1200 attendees based on the data from above three
functions it is seen that the slope of outsoucing option (-0.0001) is negative and more than
the inhouse option (-0.0004) but the breakeven point is occuring at a strength of 1150.
Hence the trend shows that the cost of miscellaneous resource usage reduces
progressively at a rate slightly higher than the inhouse option and till the function stength
of 1150, this option can be safely considered for outsourcing and after that the trade off
has to be seen. But, a better trend can be plotted with more sample size (presently 3) as
the regression constant R2
y = -0.0004x + 0.4554
R² = 0.4366
y = -0.0001x + 0.2015
R² = 0.6008
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0 200 400 600 800 1000 1200 1400
Trend Analysis : Misc Resources
inhouse
outsource
Linear (inhouse)
Linear (outsource)
100 0.49 0.17
200 0.29 0.20
500 0.30 0.13

44
Equipment Usage
87. When regression analysis is used to predict the equipment usage in organising
function between 100-1000 attendees based on the data from above three functions it is
seen that the slope of outsoucing option (-4E-06) is negative and less than the inhouse
option (3E-05) and as the strength of attendees increases the outsoucing option gradually
reduces but the inhouse option inceaser at a rapid rate. Hence, it can be safely assumed
that equipment aspect can be outsourced maximum to reduce the overall cost. But, a
better trend can be plotted with more sample size (presently 3) as the regression constant
R2
y = 3E-05x + 0.0485
R² = 0.0769
y = -4E-06x + 0.0177
R² = 0.0027
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0 200 400 600 800 1000 1200
Trend Analysis : Eqpt Usage
inhouse
outsource
Linear (inhouse)
Linear (outsource)
Attendees In-house outsource
100 0.07 0.03
200 0.03 0.00
500 0.07 0.02

45
CHAPTER-5
RECOMMENDATIONS AND CONCLUSION
88. The events with a weighted average of more than 0.52 should only be
considered for outsourcing.
89. 13 functions are recommended for outsourcing
90. 4 events not recommended based on reasons explained earlier in the report.
91. An event with weighted average less than 0.52 can be considered for part
outsourcing.
92. After analysing a sample of 3 functions, the project team has come to a
conclusion that an SOP to layout directions for outsourcing is not possible at this stage
and there is a separate study required to be undertaken for formulation of the same.
Outsourcing Cost

46
88. When regression analysis is used to predict the eqpt usage in organising function
between 100-1000 attendees based on the data from above three functions it is seen that
the slope of outsoucing option (0.0053) is less than the inhouse option (0.0083) but from
str of 100-500, the outsourcing cost is higher and breakeven occurs at a stengthr of 500+
and there after the cost of outsourcing rate is less than that of inhouse org. It can be safely
assumed that above 500, the function can be definitely outsourced and below that a trade
off decision has to be taken between different resources. But, a better trend can be plotted
with more sample size (presently 3) as the regression constant R2
y = 0.0083x - 0.7115
R² = 0.9783
y = 0.0053x + 0.7169
R² = 0.853
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
0 200 400 600 800 1000 1200
Trend Analysis : Outsourcing Cost
inhouse
outsource
Linear (inhouse)
Linear (outsource)
100 0.33 1.63
200 0.66 1.27
500 3.50 3.50

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