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Enabling Effective Outsourcing Decision Making

There are many different techniques to measure the financial attractiveness of an outsourcing initiative. The vast majority of companies use one or more of the following different approaches to make a go/no-go investment decision:

• Present Value (PV)
• Return on Investment (ROI)
• Net Present Value (NPV)
• Payback Period
• Internal Rate of Return (IRR)

This interactive modeler illustrates and discusses each of these financial measurement options, outlines the mathematical calculation behind each metric, and uses an example to explain the implications of the measurement's findings. 

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