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?