CIPD QUESTIONS

6. An online retailer must decide if it should insource or

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6. An online retailer must decide if it should insource or outsource its Web site mainte- nance. The company estimates that 4,000 hours per year will be needed to maintain its Web site. To insource maintenance requires $25,000 in fixed costs per year and
$27/hour in variable costs. Quotes from suppliers show that Web site maintenance can be outsourced for $35 per hour. Does the cost analysis support insourcing or outsourc- ing Web site maintenance?

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6. An online retailer must decide if it should insource or

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