Whether outsourcing or insourcing, the business case development is where a project is fully scoped and risks and costs are identified to develop a cost/benefit analysis and test the net benefit of a proposal.PSI's analysis of market capability and appetite provides evidence of the potential for the private sector to add value. The business case provides the information that enables the organisation to develop a procurement strategy before significant resources are spent on developing the detailed elements of the project. Risk analysis is a key area of the business case, as optimal risk allocation is a fundamental driver of value-for-money. For risks the organisation proposes to retain, the business case needs to explain why the organisation is considered better able to manage or mitigate these risks. The business case includes a preliminary view on the cost to the organisation of the risks to be retained.