Business, 12.02.2020 04:59 ellietalbot

The accounting department of a large credit card company has assembled the following data for its "Call Center" because it is considering outsourcing the center. Currently, 10,000 sq. ft of space is rented at $5 per sq ft per month and two hundred twenty employees at a yearly pay of $16,000 are employed. Utilities, including telephone service, cost approximately $10,000 a month. Overhead cost is allocated as 30% of the cost of labor per year. An outsourcing company has quoted a price of $5,500,000/year for this operation for the next five years. Is it better to outsource this function from an economic perspective?

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