Question: A software development firm is contemplating outsourcing its customer support operations to a call center in another country. The current annual fixed cost of running
A software development firm is contemplating outsourcing its customer support
operations to a call center in another country. The current annual fixed cost of running
an inhouse customer support center is $ and the variable cost per customer
interaction is $ The outsourcing contract would cost the firm $ per customer
interaction. Calculate the breakeven point between outsourcing and doing it themselves.
If they need to produce unit less than that number, is it cheaper to do it themselves or
outsource it
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
