Question: A company is thinking about outsourcing its call centre operations. The total cost of making this move is $500,000 and the total benefits are $400,000.

A company is thinking about outsourcing its call centre operations. The total cost of making this move is $500,000 and the total benefits are $400,000. However, the incremental costs and benefits are different. The incremental cost with this is $100,000 and the incremental benefit is $120,000. Assume there is no opportunity cost and no additional risks.

Additionally, assume what is outlined in this question is the full range of pertinent information. Should the company outsource the call centre?

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