Should Ricom outsource its online help desk?

Why or why not?

What performance measurements would you

recommend to be put in place?

What happens if the service provider fails to meet

these requirements?

Ricom Digital Services (RDS) is an Internet Service Provider (ISP) that caters to individual consumers and small businesses who require a high level of service and are willing to pay a premium for it. Specifically, RDS offers state-of-the-art office applications and web-building software and design, as well as plenty of secure storage space and fast access via its high-speed servers. The territory that RDS currently serves is Ontario and Eastern Canada. It offers service in English and French. The demand for RDS service is so high that the company now has the opportunity to expand into Western Canada. However, due to its inexperience with the Western-Canadian region, RDS has decided to outsource its services. After putting out a bid for proposals to companies in Western Canada, RDS has short-listed three (3) proposals for consideration. Based on industry research, RDS Management has concluded that these three (3) companies being considered are equally suitable to meet RDS' level of service requirements. One of RDS' services is its support desk. The online support works as follows: Customers who are experiencing technical problems, or who simply have questions enter a one-on-one online chat room" where they can interact directly with an expert Problems are usually resolved within 6 minutes and customers have listed it as one of the top three reasons why they retain RDS. Presently, RDS has enough capacity to handle up to 1,000,000 requests per year, although management doesn't expect the number of requests to change much from the current level of 800,000 per year. Ricom Digital Services (RDS) is an Internet Service Provider (ISP) that caters to individual consumers and small businesses who require a high level of service and are willing to pay a premium for it. Specifically, RDS offers state-of-the-art office applications and web-building software and design, as well as plenty of secure storage space and fast access via its high-speed servers. The territory that RDS currently serves is Ontario and Eastern Canada. It offers service in English and French. The demand for RDS service is so high that the company now has the opportunity to expand into Western Canada. However, due to its inexperience with the Western-Canadian region, RDS has decided to outsource its services. After putting out a bid for proposals to companies in Western Canada, RDS has short-listed three (3) proposals for consideration. Based on industry research, RDS Management has concluded that these three (3) companies being considered are equally suitable to meet RDS' level of service requirements. One of RDS' services is its support desk. The online support works as follows: Customers who are experiencing technical problems, or who simply have questions enter a one-on-one online chat room" where they can interact directly with an expert Problems are usually resolved within 6 minutes and customers have listed it as one of the top three reasons why they retain RDS. Presently, RDS has enough capacity to handle up to 1,000,000 requests per year, although management doesn't expect the number of requests to change much from the current level of 800,000 per year