Qantas Airways, Australia’s leading airline, faces cost pressures from high fuel
ID: 354743 • Letter: Q
Question
Qantas Airways, Australia’s leading airline, faces cost pressures from high fuel prices and lower levels of global airline traffic. To remain competitive, the airline must find ways to keep costs low while providing a high level of customer service. Qantas had a 30-year-old data center. Management had to decide whether to replace its IT infrastructure with newer technology or outsource it.
Copy the following questions and respond by writing, at a minimum, one or two well-developed paragraphs for each question. Be sure to cite the text to support your responses by integrating evidence through quotations, paraphrases, or summaries.
1) What factors should be considered by Qantas management when deciding whether to outsource?
2) If Qantas decides to outsource, list and describe points that should be addressed in a service level agreement.
Explanation / Answer
1) What factors should be considered by Qantas management when deciding whether to outsource?
Ans: The factors that the Qantas Airlines management must consider before deciding whether to outsource the IT operations:
2) If Qantas decides to outsource, list and describe points that should be addressed in a service level agreement.
Ans: Service level agreements of SLA are the backbone of an efficient outsourcing project. This agreement outlines the service levels and degrees that the company desires from the third party to which it has outsourced its services.
If Qantas is opting for outsourcing its IT services, the following points must be considered while drafting the SLA: