PAGODA.COM
CASE STUDY WRITE UP
July 14, 2012
Executive Summary
Pagoda.com, an internet service provider, needs to make a decision as to whether or not the company should outsource its online help desk service to a firm in New Delhi, India. Pagoda.com caters to individual consumers and small businesses who require a high level of service and are willing to pay a premium for it. Pagoda.com offers state-of-the-art email applications and web building software, as well as plenty of storage space and fast access via its high-speed servers. Pagoda's customers are more concerned with the high quality service that they receive than they are with the costs associated with it. Their customers
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Cons: Pagoda's current solution to handle the online help desk services in-house is more expensive than if they were to outsource this function. If Pagoda is not proactive in looking for new innovative technological options for the company to consider, then they risk being eventually overtaken by a competitor that has made more technological advancements.
Alternative 2: Pagoda can choose to outsource the online help desk service to the New Delhi firm and hope that the transition is seamless and goes unnoticed to their customers. Outsourcing the online help desk services will free up more time and money for Pagoda to put towards updating their equipment software to ensure that they remain a state-of-art business, as well as staying ahead of their competitors in the industry.
Pros: Pagoda will be able to realize a significant cost savings by outsourcing the online help desk service while their customers continue to receive the same level of service. The IT industry is continuously evolving and if Pagoda does not continue to research and apply new innovative techniques, they may eventually be overtaken by a competitor who does the same thing cheaper and faster. The money that Pagoda saves from outsourcing can be used towards additional research and innovation for the company's future.
Cons: If the transition to the New Delhi firm is noticed by their customers, then Pagoda risks losing their customer's trust by making these
One of the major advantages of outsourcing customer service is that the best suppliers have great experience in rapidly installing call centres. This includes acquiring and training new staff, locating new facilities, installing phone and computer terminals, and building required links to the company’s computer system. The customer service function is not considered by employees to be a critical job
(Pearlson,2001). Cost is the most important factor when the enterprise make a decision of insourcing or outsourcing. If the company produce the products or service on its own, there are costs more than producing, which can include investments of researching, training, and equipment.The investment of insourcing can be a lot more than the outsourcing because of economies of scale.Outsourcing providers can gain significant savings from economies of scale, which client companies usually can’t get on its own(Pearlson,2001). This benefit could be magnified in IT outsourcing.In the case of Project Harmony, as a food company, Campbell soup was a lack of sufficient scale within their own IS departments and IT technical expertise, so the saving between outsourcing and insourcing was significant.To conclude, cost reducing is the first of core benefits of outsourcing due to economies of
Office Supply Incorporated (OSI) is a company in crisis, with challenges in its cost structure and poor IT performance. Outsourcing to Technology Infrastructure Solutions (TIS) is an opportunity to both reduce costs and complexity for the firm, but first must consider whether outsourcing is a good strategic fit for OSI. Outsourcing is known as the practice of turning over responsibility of some or all of organizations information systems to a foreign firm in order to stay competitive. Outsourcing is not new to the business world, as it dominated the manufacturing sector the past couple of decades. There are various advantages and disadvantages. Advantages include lower costs, better quality, and downsizing to focus on the
“Outsourcing worked. Using external service providers to cut costs and improve performance has become truly commonplace. As much as the popular press has focused on the debate over the benefits of
Student responses or discussion of this question should incorporate a complete list of customer benefits as well as customer costs (value being of function of benefits minus costs). By this point, the benefits should be easily identified as they have already come out in answering the previous questions. The benefits received by the customer could be identified in terms of need/want fulfillment. However, the cost factor has not been discussed. The most obvious cost is
One of the most important forces of outsourcing is that organizations do not have gain the needed and required sources internally. And they have a difficulty in integrating and attracting expertise, where outsources own capabilities on a global level, modern technologies and other required resources. Also, by outsourcing the cost of keeping employees and consultants for short term is reduced. Furthermore, outsourcers are able to offer better career opportunities for business IT staff if they decide to transit to the outsourcer. As the manager of BP Company viewed the main reason of BP Company outsourcing is that "it has become increasingly apparent that service companies provide us with technical skills and ideas that we could no longer develop inside our own company" (Kremis, 2006).
Outsourcing can provide businesses with flexible, low cost solutions to staffing problems. However, it can also present challenges and complexities, which is why our expert practitioners advise clients seeking to pursue outsourcing arrangements. We have advised a number of companies on the outsourcing of key parts of their businesses, including the outsourcing of IT and other business functions.
It’s important that Triad assesses the pros and cons involved with outsourcing, such as cost/benefit, potential risks, contractual arrangements and service levels, and necessary controls, before making any changes. We should also define what operations we are considering outsourcing – as opposed to a company-wide reorganization and what other functions we might be able to add as a result of outsourcing MIS IT solutions. While traditional software solutions address the needs of one process, enterprise software, which we might consider for our MIUS needs, addresses multiple “thinking” processes – rather than a simple “tool.”
Leveraging a personalized build versus purchase determination, company managers can ascertain if outsourcing specific processes amounts to a shrewd strategic decision (Marquis, 2011). Occasionally, business process outsourcing (BPO) is the proper option for persistent internal activities (Hackney, 2011). Without a doubt, BPO permits a company to concentrate on its primary competencies and benefit from price efficiencies produced by the commoditization of information technology (IT) services (Ghodeswar & Vaidyanathan, 2008). One customary outsourcing candidate is a company’s IT security operations. A current client, The NYS Office of Mental Health, has taken the initial steps to begin outsourcing many of its security functions. Outsourcing IT security brings about a significant change in the style of governance, considerable changes in the internal processes of the business, and substantial changes in the business methods utilized to do business with the external environment (Fehr, 2012).
In the beginning of the millennia the internet revolutionized the world and the way people and organizations alike did business. The impact now was capacity was reached a point where it was now feasible to offer IT/business application services to companies through the internet on a pay per use basis. Some believed that this would circumvent the need of costly IT departments. The offering companies could now procure the needed infrastructure to other businesses quicker and only having to pay for what was needed.
These are the days where we invest most of our time to get things done sitting in front of the computer rather that running from one place to the other. It has brought a revolution in the way we handle things. It saves money, labor and its benefits are umpteen. When the demand and the interest by the public are steering towards the use of online services, it has become an unavoidable segment for any organization to emphasis more on it to attract its customers with a better user experience.
The Information that was found is that sales reaches was $2 billion dollars mark, but the overall of the high until the competition have decreased their sales and profits. But as you know that you need to operate and the maintain24/7 center in order to remain relevant and competitive. The alternative to outsourcing vs. In-house service for the full purpose of costs savings which according to the textbook outsourcing but also the Business Processes outsourcing (BPO) which is the management of one or more specific business Processes also Functions for example procurement, finance, accounting, human resources, asset or the property management by the third party and together with all of the information technology (IT) which will be the supports that the process or the function
There are so many reasons for outsourcing which is the better service, improving organisational efficiency, access to new technology, reduced IT cost, & an ability to refocus in-house staff on higher-value work. The outsourcing option has two main types, first one is
• Decrease infrastructure costs by utilizing a more specialized, third-party staff. • Experience cost-savings during the 2nd year, but face increased expenditures during 1st year. • Maintain availability and performance through SLAs with the vendor. • Ensure a smooth transition through a formalized change-management program. • Mitigate risks by documenting procedures and improving employee awareness.
You may worry, "How can the vertiginous turnover often experienced by this profession leave any chance of success in ambitious client relations policies?" Outsourced call centers