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Outsource activity
Silver Lakes is studying whether to outsource its Human Resources (HR) activities. Salaried professionals who earn $397,000 would be terminated; in contrast, administrative assistants who earn $120,000 would be transferred elsewhere within the company. Miscellaneous departmental overhead is expected to decrease by $20,000 and $25,000 of corporate overhead, previously allocated to HR would be picked up by other departments. If Silver Lakes can secure needed HR services locally for $410,000, what would the net savings (net cost) by outsourcing?
Human Resources or Human Resource Management deals with HR Service Level Agreement. HR Service Level Agreement is an agreement made between the employer and the employee, which states that the employee would work under any client and sometimes any ti..
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