Question 1

The reasons given for backsourcing are similar to the reasons given for outsourcing in the first place.

Accepted Answer

The reasons for backsourcing, such as cost savings, improved quality, and increased control, are often the same reasons that companies initially chose to outsource.

Question 2

____________is the most widely used form of cloud computing.

Accepted Answer

The answer of ____________is the most widely used form of...

Question 3

To manage control yet realize the financial benefits that come with outsourcing, firms have created ____________subsidiaries to operate on their behalf and provide services.

Accepted Answer

The answer of To manage control yet realize the financial...

Question 4

Outsourcing an IT infrastructure will always save an organization money.

Accepted Answer

Outsourcing IT infrastructure may save money in some cases, but it is not a guarantee. The cost savings depend on various factors such as the scope of services outsourced, location, quality of service provider, and level of customization required. Additionally, outsourcing may also lead to additional costs such as transition expenses, contract management costs, and potential security risks. Therefore, outsourcing should be evaluated on a case-by-case basis to determine its potential cost benefits.

Question 5

Using outsourcing providers frees up a business's employees so that they can devote their energies to core competencies for the business.

Accepted Answer

Outsourcing providers take on certain tasks and responsibilities that would otherwise fall on the business's employees, giving them more time and energy to focus on activities that directly contribute to the business's core competencies.

Question 6

____________is the formal contract between clients and an outsourcing provider that describes the expected performance of the service.

Accepted Answer

The answer of ____________is the formal contract between clients and...

Question 7

More highly developed countries tend to offer higher levels of skills at lower costs.

Accepted Answer

More highly developed countries tend to have higher labor costs due to better living standards and stronger economies, making the cost of skills more expensive compared to less developed countries.

Question 8

____________was the first country to make IT outsourcing a total industry.

Accepted Answer

The answer of ____________was the first country to make IT...

Question 9

To reduce its dependence on a single outsourcing provider, an organization will seek flexibility and take a "best-of-breed" approach. ____________is the term used to describe this use of multiple outsourcing vendors?

Accepted Answer

The answer of To reduce its dependence on a single...

Question 10

Which of the following makes countries attractive for offshoring?

Accepted Answer

All of the above factors make countries attractive for offshoring. English language proficiency ensures ease of communication with the offshore team, political stability ensures a safe environment for business operations, economic stability ensures a predictable business scenario, and friendly relationships ensure a smooth exchange of resources and information.

Question 11

Collaboration crowdsourcing is when social media is used to source solutions to a problem but only a few may be actually used.

Accepted Answer

The answer of Collaboration crowdsourcing is when social media is...

Question 12

Only large, multinational organizations pursue outsourcing arrangements.

Accepted Answer

Outsourcing can be pursued by organizations of any size. Small and medium-sized enterprises also opt for outsourcing arrangements to save costs and focus on their core competencies.

Question 13

Outsourcing decisions can be difficult and expensive to reverse because of:

Accepted Answer

Outsourcing decisions involve considerations such as infrastructure, staffing, and contractual agreements, which can be complicated and costly to reverse if the outsourcing arrangement does not work out. Cultural differences, data security, and data loss are also important factors to consider, but they can often be addressed through proper planning and management. CMM (Capability Maturity Model) is a model for assessing and improving software development processes and is not directly relevant to outsourcing decisions.

Question 14

In which of the following cloud types is each cloud managed centrally and none of the clouds are integrated?

Accepted Answer

In a multi-cloud environment, an organization uses multiple cloud computing services from different providers in a single architecture, but these services are not necessarily integrated or centrally managed. Each cloud service in a multi-cloud setup operates independently, addressing specific needs or workloads without the requirement for integration among them. This contrasts with hybrid clouds, where there is integration between different cloud types (e.g., public and private).

Question 15

Outsourcing of IT services began in 1949 with Eastman Kodak.

Accepted Answer

Outsourcing of IT services did not start until the 1980s, so Eastman Kodak could not have been the first company to do so in 1949.

Question 16

The global outsourcing market is growing.

Accepted Answer

The global outsourcing market has been consistently growing over the past few years due to various factors such as cost savings, access to skilled labor, and increasing globalization.

Question 17

What is it called when a company brings IS capabilities that were previously outsourced back inhouse?

Accepted Answer

Bringing IS capabilities back inhouse is referred to as backsourcing.

Question 18

Which type of captive center performs core business processes for a parent company and outsources noncore work offshore?

Accepted Answer

A hybrid captive center performs both core business processes and outsources noncore work offshore, making it the best fit for this scenario. Shared captives focus on sharing resources and expertise between multiple parent companies, divest captives are created to eventually sell off to a third party, terminated captives are no longer in operation, and core captives solely focus on core business processes for the parent company without any offshore outsourcing.

Question 19

From the perspective of outsourcing clients, one of the best things about outsourcing are the 10-year long-term agreements.

Accepted Answer

While long-term agreements can offer stability for both outsourcers and outsourcing clients, most outsourcing agreements typically range from three to five years, and rarely exceed seven years.

Question 20

Because they have an advanced technological foundation, countries in the highest tier are able to focus investments in "cottage industries."

Accepted Answer

Countries in the highest tier typically focus on high-tech and advanced industries rather than cottage industries, which are small-scale, traditional businesses.

Quiz 11: Information Systems Sourcing