PROJ410 – Case Study 1
reduced operational control over outsourced activities! 3irect and indirect costs must #econsidered #y managers in ma(ing such decisions!
2.Three different alternatives and evaluation of these alternatives2.1.Local data center
-aving the data center close to customer is important factor in meeting customers" needsand therefore off+site/local data centers are located in the same country as the customer!By esta#lishing local data centers our company can e2pand and improve the offsitemodel! $hese local centers &ill allo& close interaction &ith the customer and uic( response to a service reuest #eing in the same geographic location and time )one as thecustomer! or(force may uic(ly move #ac( and forth #et&een the on+site team and thelocal team! $o compete more effectively &ith local service providers our company canrecruit locally hired managers mar(eters and possi#le technical associates in localcenters!
+ Service+level agreements are critical in the outsourcing #usiness! $he client company and the outsourcer must (no& &hat to e2pect from eachother! $he uality of the service+level agreements determines the uality of therelationship #et&een the client company and the outsourcer! ' lot can happen during thelife cycle of a data center services contract as people are reassigned to other pro%ectsleave the company or get promoted! Our company &ould need to (no& &hoseauthori)ation is reuired to fi2 escalations in data centre hosting5 ill there #e 64 #y 7services from the outsourcer.s employees5
Security of the data
+ Cloud computing in particular has lot of concerns a#out security!' remote service provider could #e transferring data over pu#lic data infrastructuresu#%ecting the company to data transfer ris(s! 8irtuali)ation poses ris(s &ith data fromdifferent customers hosted on the same server! 'lthough logical #arriers may #e in placeit.s easy enough to reach the conclusion that those #arriers are not as strong as physical
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