Question 1

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

Accepted Answer

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

Question 2

If a company decides to outsource to a company in another country that is close in proximity as well as culturally,economically,and politically similar,they are using this type of outsourcing

Accepted Answer

The answer of If a company decides to outsource to...

Question 3

This is the most widely used form of cloud computing.

Accepted Answer

The answer of This is the most widely used form...

Question 4

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

Accepted Answer

The answer of This is the formal contract between clients...

Question 5

Which of the following makes countries attractive for offshoring?

Accepted Answer

All of the above factors make countries attractive for offshoring. English language proficiency is important for communication with clients and customers in the home country. Political stability ensures that there is a favorable climate for business operations, and economic stability provides an environment that encourages investment and growth. Friendly relationships with other countries can also foster trade and investment partnerships.

Question 6

To reduce its dependence on a single outsourcing provider,an organization will seek flexibility and take a "best-of-breed" approach.What 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 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

Explain the options a company has when the quality of work done by an outsourcing firm is no longer satisfactory.

Accepted Answer

The answer of Explain the options a company has when...

Question 9

Only large,multi-national organizations pursue outsourcing arrangements.

Accepted Answer

Small and medium-sized organizations also pursue outsourcing arrangements to reduce costs, increase efficiency, and focus on core competencies.

Question 10

Explain how an IS outsourcing provider is able to derive savings that companies themselves cannot realize.

Accepted Answer

The answer of Explain how an IS outsourcing provider is...

Question 11

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

Accepted Answer

Outsourcing decisions involve a lot of consideration for infrastructure and staffing which can be complicated and expensive to reverse if the company decides to bring the work back in-house. Cultural differences, data security, data loss and CMM are also important factors to consider, but they can often be addressed through proper communication and planning.

Question 12

Cloud computing is a form of outsorcing in which IT services are provisioned over the __________.

Accepted Answer

The answer of Cloud computing is a form of outsorcing...

Question 13

This is the most traditional approach to sourcing.

Accepted Answer

The answer of This is the most traditional approach to...

Question 14

Outsourcing an IT infrastructure will always save an organization money.

Accepted Answer

While outsourcing IT infrastructure can potentially save an organization money, it is not always the case. Other factors such as the quality of the outsourced services, contract terms, and fluctuating costs can also impact the overall cost savings. Additionally, some organizations may have complex requirements that make it more cost-effective to maintain their infrastructure in-house.

Question 15

The global outsourcing market is growing.

Accepted Answer

According to various reports and studies, the global outsourcing market is indeed growing. In fact, it is projected to reach $220 billion by 2020.

Question 16

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 non-core tasks allows a company's employees to focus on their core competencies and improve the overall efficiency and productivity of the business.

Question 17

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

Accepted Answer

The reasons for backsourcing include cost savings, better quality control, and strategic realignment, which are also common reasons for outsourcing.

Question 18

This is a type of captive center that performs core business processes for a parent company and outsources noncore work offshore.

Accepted Answer

A hybrid captive center performs core business processes for a parent company while outsourcing non-core work offshore, making it the best choice. Shared captive centers are set up and shared by multiple parent companies, divest captive centers are sold off or spun out into a separate company, terminated captive centers are shut down permanently, and core captive centers perform all business processes internally.

Question 19

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

Accepted Answer

This is known as backsourcing, where the company brings back in-house the IS capabilities that were previously outsourced to a third-party provider.

Question 20

This was the first country to make IT outsourcing a total industry.

Accepted Answer

The answer of This was the first country to make...

Quiz 9: Sourcing Information Systems Around the World