Calculate the total cost of outsourcing


Response to the following

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, other than costs, should Pagoda con-sider? How would you weigh these factors? Given the above, 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? Be sure to consider Tables 7.6 and 7.7 when framing your answer.

4. A statement of work typically specifies performance mea-surements that the buying firm can use to determine whether 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?

Attachment:- table.rar

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Operation Management: Calculate the total cost of outsourcing
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