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…show more content… 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