Make-Buy, Outsourcing & Network Design worked example

Outsourcing ROI with one-time outsourcing transition investment of 62,500 $: a worked example

Push one-time outsourcing transition investment up to 62,500 $ and the picture changes. This example computes every intermediate figure at that operating point. Use it when outsourcing roi in make-buy, outsourcing and network design is being put in front of a capital committee and the savings story needs to hold up.

The inputs for this scenario

  • One-time outsourcing transition investment: 62,500 $ (raised for this scenario; the documented default is 25,000)
  • Gross annual savings from outsourcing: 18,000 $ / yr (unchanged)
  • Annual vendor management and support cost: 2,500 $ / yr (unchanged)

Working through the calculation

  • Applying the documented formula (Net annual outsourcing roi savings = annual outsourcing roi savings - annual outsourcing roi support cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 4.03 yr for outsourcing roi payback period, the number this scenario is built around.
  • At this operating point the engine returns 15,500 $ / yr for net annual outsourcing roi savings.
  • At this operating point the engine returns 62,500 $ for outsourcing roi investment.
  • At this operating point the engine returns 15,000 $ for five-year net outsourcing roi value.

How this compares with the baseline

  • Against the tool's baseline example, where one-time outsourcing transition investment sits at 25,000 $ and the headline result is 1.61 yr, this scenario comes in 150% above the baseline at 4.03 yr.
  • It computes the payback period in years on an outsourcing transition by dividing the one-time investment by net annual savings (gross savings minus ongoing support cost). The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Outsourcing roi payback period: 4.03 yr (headline result)
  • Net annual outsourcing roi savings: 15,500 $ / yr
  • Outsourcing roi investment: 62,500 $
  • Five-year net outsourcing roi value: 15,000 $

Run it with your numbers

  • Every input above is editable in the live Outsourcing ROI calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.