Deck 19: Outsourcing in the 21st Century

Question 1

Which of the following is the primary reason why companies outsource?

A) Tap outside sources of expertise.
B) Concentrate resources on core business.
C) Reduce headcount and related expenses.
D) Better manage the costs of internal processes.

Answer 1

A
Explanation: According to the figure Reasons Companies Outsource, "tapping outside sources of expertise" is the primary reason why companies outsource.

Question 2

Which of the following are the influential driver(s)affecting the growth of outsourcing markets?

A) Core competencies
B) Rapid growth
C) Industry changes
D) All of these

Answer 2

D
Explanation: All of these are the influential drivers affecting the growth of outsourcing.

Question 3

Which of the following is a benefit an organization can receive from outsourcing?

A) Financial savings
B) Increased technical abilities
C) Market agility
D) All of these

Answer 3

D
Explanation: All of these are benefits an organization can receive from outsourcing.

Question 4

In the past,outsourcing was often used tactically,as a quick-fix,short-term solution to a particular need or problem which did not form part of an overall business strategy.

Question 5

Businesses typically outsource their ___________ business functions,such as payroll and IT.

Question 6

What is it called when a company uses organizations from developing countries to write code and develop systems?

A) Insourcing
B) Outsourcing
C) Business process outsourcing
D) Offshore outsourcing

Question 7

Which of the following is an outsourcing challenge caused by contract length?

A) Difficulties in getting out of a contract
B) Problems in foreseeing future issues
C) Problems in reforming an internal IT department
D) All of these

Question 8

Outsourcing is a common approach using the professional expertise within an organization to develop and maintain the organization's information technology systems.

Question 9

Which of the following is the most uncommon reason why companies outsource?

A) Tap outside sources of expertise.
B) Concentrate resources on core business.
C) Reduce headcount and related expenses.
D) Better manage the costs of internal processes.

Question 10

What is an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house?

A) Insourcing
B) Outsourcing
C) Business process outsourcing
D) Offshore outsourcing

Question 11

Which of the following is the most common function outsourced?

A) IT
B) HR
C) Finance
D) Marketing/sales

Question 12

What is the outsourcing option that includes the closest location and direct customer control?

A) Onshore outsourcing
B) Nearshore outsourcing
C) Offshore outsourcing
D) None of these

Question 13

___________ outsourcing refers to contracting an outsourcing arrangement with a company in a nearby country.

Question 14

Human resources is the most commonly outsourced function.

Question 15

What is a common approach using the professional expertise within an organization to develop and maintain the organization's information technology systems?

A) Insourcing
B) Outsourcing
C) Business process outsourcing
D) Offshore outsourcing

Question 16

Which of the following is the least common function outsourced?

A) IT
B) HR
C) Finance
D) Marketing/sales

Question 17

Contract length,competitive edge,____________,and scope definition are the four primary challenges for outsourcing.

Question 18

All of the following are challenges of outsourcing except:

A) Contract length.
B) Competitive edge.
C) Confidentiality.
D) Reduced frustration and expense related to hiring and retaining employees in an exceptionally tight job market.

Question 19

Insourcing is an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house.

Question 20

Offshore outsourcing is using organizations from developing countries to write code and develop systems.

Question 21

___________ outsourcing is using organizations from developing countries to write code and develop systems.

Question 22

Identify the three primary outsourcing options.

Question 23

Describe why outsourcing is a critical business decision.

Question 24

Explain the business benefits of outsourcing.

Question 25

Describe the challenges of outsourcing.

Question 26

____________ uses the professional expertise within an organization to develop and maintain the organization's information technology systems.

Question 27

Financial savings,increased technical abilities,and _________ agility are the benefits an organization can receive from outsourcing.

Question 28

_________ is an arrangement by which one organization provides a service or services for another organization that chooses not to perform them in-house.