Microsoft evaluates outsourcing its customer support services. In October 2040, the following data is provided:

• In-House Costs: $8,000,000
• Outsourcing Cost: $6,500,000

Requirements:

• Perform relevant cost analysis for the outsourcing decision.
• Calculate the net savings from outsourcing.
• Prepare a recommendation report.
• Discuss non-financial factors affecting the decision.