Question: The designated team ( s ) do the following Class Problems in accordance with Session 0 . You are the project manager for a software
The designated teams do the following Class Problems in accordance with Session
You are the project manager for a software development project for an updated management system.The cost of doing it inhouse is $ You estimate you'll spend $ per month updating the software with client information, government regulations, and maintenance.
You know that a contractordo the programmingfor your company and charge a fee based on the number ofpersonnel using the program every month. This contractor will charge you $ per month per user of the accounting system. You will have roughly employees using the system each month.Youll need some additional inhouse resourcesto manage the contract, per se at a rate of an extra $ per month.
a How many months can you use the system before it's better to do it inhouse instead of hiring a contractor.Show your work! USE THE ALGEBRAIC FORMULATION OF THE PROBLEM! In other words, set the cost of contracting it out equal to the cost of doing it inhouse, and solve for the breakeven time.
b Outsourcing involves more than just possibly saving money. List at least five other factors that should be considered in making this outsourcing decision.
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