case study Question in supply and chains management

Pagoda.com, is an internet service provider, that serves to individual customers and small businesses that require a good to high level of service and they are willing to pay a best price for it. Pagoda.com offers the most advanced e-mail applications and web software development, as well as amply of storage space and a quick access through its great speed servers. Presently Pagoda is debating on whether or not the company should outsource their online technical support services from company in New Delhi, India. This company in India offers the service and it will be handle by a personal that speak English fluently and have the appropriate studies in technology. This Help Desk is one of the services that Pagoda’s customers like the most, due to the efficiency in the personnel that performs it. Customers of Pagoda are concerned more about the quality of the services they receive, the costs associated with it. Poor service can return into, their clients to abandon their service with Pagoda as soon as can be seen are not to the height of the quality of the waiting.

1. Calculate the total cost of outsourcing the online help desk versus staying with the current solution, which option is cheaper?

2. What other factors, besides cost, should Pagoda consider? How would you weight these factors? Given these options, how might you use a weighted-point evaluation system to evaluate the two options?

3. Should Pagoda.com outsource its online help desk? Why or why not?

4. A statement of work typically specifies performance measurements that the buying firm can use to determine whether or not the service provider is meeting the terms of the contract. What performance measurements would you recommend be put in place? What should happen if the service provider fails to meet these requirements?