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.