Question

In an attempt to cut expenses, an organisation disbanded its IT department and outsourced its IT function to a business process outsourcing company. In doing so the company has managed to save 20% on its IT function expenditure.

The outsourced IT function has saved the organisation 1/5th on their IT function expenditure compared to the in-house IT function.
A.Conclusion Follows
B.Conclusion Does Not Follow

Answer 1

The conclusion follows.

Step-by-step explanation:

The conclusion follows.

By outsourcing its IT function to a business process outsourcing company, the organisation has managed to save 20% on its IT function expenditure. This aligns with the statement that the outsourced IT function has saved the organisation 1/5th on their IT function expenditure compared to the in-house IT function. Since 1/5th is equal to 20%, it can be concluded that the company has indeed achieved a 20% cost saving by outsourcing its IT function.