A gourmet food export company located in the United Kingdom is considering outsourcing some of its IT
Question:
A gourmet food export company located in the United Kingdom is considering outsourcing some of its IT services internationally, including the development and maintenance of its online website and ordering system, website hosting, and social media development and maintenance. The company's previous website was developed by a contractor and is failing to meet its current needs, and it does not have staff dedicated to social media. It has identified two potential outsourcing suppliers, one in India and the other in the United States.
What are four examples of new direct costs that the company will need to consider when analyzing the costs of outsourcing?
- Given that this is a new function for the company, what are two examples of new direct costs that the company will need to consider when analyzing the costs of insourcing?
- What are two potential benefits of outsourcing these activities?
- What is one potential obstacle of outsourcing these activities?
Management Accounting
ISBN: 9780077185534
6th Edition
Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen