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.

What factors should Qantas management consider when deciding whether to outsource? If Qantas decides to outsource, list and describe points that should be addressed in a service level agreement.