Deck 32: Outsourcing

Question 1

Which of the following is a disadvantage of outsourcing?

A) loss of control
B) inability to ensure a certain level of quality
C) takes up too much management time
D) high implementation risk

Answer 1

A

Question 2

Which of the following is an advantage of outsourcing?

A) It allows the organization greater control.
B) It guarantees quality and risk reduction.
C) It allows for an easy exit.
D) It caps the organization's financial risk.

Answer 2

D

Question 3

Which of the following is an advantage of outsourcing?

A) It allows the organization greater control.
B) It helps ensure a certain level of quality.
C) It guarantees quality and risk reduction.
D) It allows for an easy exit.

Answer 3

B

Question 4

Companies opt for outsourcing because it ________.

A) frees up management time
B) guarantees quality and risk reduction
C) allows the organization greater control
D) allows for an easy exit

Question 5

Which of the following is an advantage of outsourcing?

A) It allows the organization greater control.
B) It guarantees quality and risk reduction.
C) It can be an easy way to gain expertise.
D) It allows for an easy exit.

Question 6

Which of the following is a disadvantage of outsourcing services?

A) inability to ensure a certain level of quality
B) critical knowledge in minds of vendors, not employees
C) takes up too much management time
D) high implementation risk

Question 7

Outsourcing,by definition,refers to the use of a foreign vendor.

Question 8

Which of the following is a disadvantage of outsourcing?

A) high implementation risk
B) inability to ensure a certain level of quality
C) takes up too much management time
D) potential loss of intellectual capital

Question 9

IT and IS services cannot be outsourced by a company.

Question 10

Just about any business activity in the value chain-from marketing and sales to logistics,manufacturing,and customer service-can be outsourced.

Question 11

Flashlight Films has outsourced its internet and social media marketing campaigns.This is an example of how companies can outsource ________.

A) computer hardware
B) computer software
C) entire applications
D) entire business functions

Question 12

Outsourcing ________.

A) allows the organization greater control
B) guarantees quality and risk reduction
C) allows companies to obtain part-time services
D) allows for an easy exit

Question 13

________ is the hiring of another organization to perform a service.

A) Insourcing
B) Merchandising
C) Poaching
D) Outsourcing

Question 14

A Web storefront is a form of ________ outsourcing.

A) computer hardware
B) software
C) application
D) entire business function

Question 15

Which of the following is a disadvantage of outsourcing?

A) It results in high implementation risk.
B) It makes it impossible for the company to ensure a certain level of quality.
C) It could result in the CIO becoming superfluous.
D) It takes up too much management time.

Question 16

Which of the following is true about acquiring licensed software?

A) It is not a form of outsourcing, just licensing.
B) It is created in-house by an organization.
C) It is usually licensed from a branch of the same company.
D) It allows the vendor to spread maintenance cost over all users.

Question 17

Which of the following is a disadvantage of outsourcing services?

A) no easy exit
B) inability to ensure a certain level of quality
C) takes up too much management time
D) high implementation risk

Question 18

Which of the following is a cost reduction advantage of outsourcing?

A) obtaining expertise
B) avoiding management problems
C) gaining economies of scale
D) greater management control

Question 19

Although outsourcing does offer the benefit of capping exposure through fixed costs,it also removes the benefits of ________.

A) time saving
B) obtaining expertise
C) risk reduction
D) economies of scale

Question 20

Instead of buying and maintaining its own computers,Timber and Tools has leased time from a cloud vendor.This is an example of how ________ can be outsourced.

A) computer hardware
B) software
C) entire applications
D) entire business functions

Question 21

Outsourcing caps financial risk.

Question 22

What are the management advantages of outsourcing?

Question 23

When a company outsources a system,it continues to maintain control over prioritizing the fixing of software failures and problems.

Question 24

Outsourcing protects companies from a potential loss of intellectual capital.

Question 25

What are the popular outsourcing alternatives?

Question 26

How can outsourcing reduce risk?

Question 27

Outsourcing can make the CIO superfluous.

Question 28

Acquiring licensed software is a form of outsourcing.

Question 29

Outsourcing does not offer the hiring company an easy exit from the agreement with the vendor.Why?

Question 30

Although the fixed cost achieved through outsourcing does cap exposure,it also removes the benefits of economies of scale.

Question 31

The outsource vendor is usually forbidden by the contract to change direction or the management team working with the organization.

Question 32

It is not yet possible to outsource entire business functions.

Question 33

A Web storefront is a form of outsourcing an entire business function.

Question 34

In time,there is a risk that the outsource vendor will become the de facto sole source for the company.

Question 35

Describe in brief the risks related to the loss of control that may result from outsourcing.

Question 36

One of the benefits of outsourcing is that it allows for an easy exit.

Question 37

Due to the benefits of specialization,it is guaranteed that outsourcing will provide a level of quality higher than what could be achieved in-house.

Question 38

There is no easy exit from an outsourcing agreement.

Question 39

Some companies choose to outsource to save management time and attention.

Question 40

Acquiring licensed software increases costs for all users.