Question 1

According to the Diamond Management and Technology Consultants 2006 outsourcing study,____ percent of outsourcing "buyers experienced an abnormal contract termination in the past year."
A) 2
B) 12
C) 27
D) 47

Accepted Answer

The answer of According to the Diamond Management and Technology...

Question 2

Three of the most frequently cited reasons for outsourcing are to ____.
A) cut or stabilize costs,improve the firm's focus on external operations,and upgrade the firm's capabilities and services
B) cut or stabilize costs,improve the firm's focus on core operations,and upgrade the firm's customer service
C) cut or stabilize costs,improve the firm's focus on customer operations,and upgrade the firm's capabilities and services
D) cut or stabilize costs,improve the firm's focus on core operations,and upgrade the firm's capabilities and services

Accepted Answer

Cutting or stabilizing costs is a common reason for outsourcing, as it allows a company to reduce labor costs and save money on operational expenses. Improving the firm's focus on core operations is also a popular reason, as outsourcing non-core functions can allow the company to concentrate on its core competencies. Upgrading the firm's capabilities and services is also a benefit of outsourcing, as it can provide access to specialized expertise and technology that the company may not have in-house. Therefore, option D covers all three of these frequently cited reasons for outsourcing.

Question 3

The top reason to outsource is to ____.
A) improve the firm's focus on core operations
B) upgrade the firm's capabilities and services
C) cut or stabilize costs
D) improve the firm's focus on external operations

Accepted Answer

The answer of The top reason to outsource is to...

Question 4

____ requires dedicated,trained vendor relationship professionals to manage the working relationship between the organization and outsourcing service provider.
A) Authority
B) Governance
C) Relationship management
D) Relationship control

Accepted Answer

The answer of ____ requires dedicated,trained vendor relationship professionals to...

Question 5

____ is an arrangement in which one company contracts with another organization to provide services that could be provided by company employees.
A) Outsourcing
B) Offshoring
C) Outshoring
D) Service Level Agreement

Accepted Answer

Outsourcing is the arrangement in which one company contracts with another organization (usually located in a different country) to provide services that could be provided by company employees. This is often done to reduce costs or access specialized expertise. Offshoring refers specifically to outsourcing to a company in a different country, while outshoring is not a commonly used term. A Service Level Agreement (SLA) is a contract between a service provider and a customer that specifies the level of service expected and the metrics that will be used to measure performance. While an SLA may be part of an outsourcing arrangement, it is not synonymous with outsourcing itself.

Question 6

____ of an outsourcing contract involves formal and informal processes and rules to manage the relationship between the two organizations.
A) Governance
B) Management
C) Control
D) Consensus

Accepted Answer

Governance refers to the processes and rules that are implemented to manage the relationship between the client and the outsourcing provider. It includes both formal and informal mechanisms for communication, decision-making, and problem-solving. Control refers to the ability to monitor and enforce compliance with the terms of the contract, while management involves the day-to-day oversight of the outsourced activities. Consensus refers to the process of reaching agreement between two parties and is not specific to outsourcing relationships.

Question 7

____ "frees up" a large amount of resources and management effort that can be redirected to other more strategic issues within the company.
A) Streamlining
B) Outsourcing
C) Restructuring
D) Resourcing

Accepted Answer

Outsourcing allows a company to transfer non-core functions to an external vendor, which frees up resources and management effort that can be redirected towards other more strategic issues. Streamlining, restructuring, and resourcing do not necessarily involve external vendors and may not result in the same level of resource and management effort savings.

Question 8

When the people doing the work are located in another country,the arrangement is called ____ outsourcing.
A) foreign
B) long distance
C) offshore
D) distant

Accepted Answer

Offshore outsourcing refers to the practice of hiring an external organization from another country to perform business functions. It involves a company delegating specific business functions to a third-party vendor in another country.

Question 9

____ processes typically have a direct impact on the organization's customers,are major cost drivers,or are essential for providing services.
A) Core
B) Leading
C) High stake
D) Direct

Accepted Answer

Core processes are fundamental to the organization's mission and have a direct impact on customers, making them essential for providing services. They also tend to be major cost drivers as they involve the main operational activities of the organization.

Question 10

A(n)____ business process is one that provides valuable customer benefits,is hard for competitors to imitate,and can be leveraged widely across many products and markets.
A) leading
B) enhanced
C) standard
D) core

Accepted Answer

A core business process is one that is essential to the company's operations and provides a competitive advantage. It is difficult for competitors to imitate because it requires a unique combination of resources, knowledge, and skills. Core processes also have the potential to be leveraged across different products and markets, allowing the company to achieve greater efficiency and profitability.

Question 11

Good ____ managers should have excellent communication,problem solving,and negotiation skills.
A) project
B) liaison
C) governance
D) relationship

Accepted Answer

The answer of Good ____ managers should have excellent communication,problem...

Question 12

The ongoing tracking and measurement of important ____ enables the organization to use the data as feedback,so that each step in the outsourcing process can be improved based on the result of the project.
A) contacts
B) standards
C) metrics
D) benchmarks

Accepted Answer

The term "metrics" refers to the quantifiable measures used to track and evaluate the progress and success of a project or process. By tracking and measuring these metrics, organizations can identify areas of improvement and adjust their outsourcing strategies accordingly. The other options, contacts, standards, and benchmarks, are not as directly related to tracking and improving the outsourcing process.

Question 13

In a typical contract,if the service provider's performance and costs do not meet the ____ standards,financial penalties can be assessed and the contract can even be terminated.
A) SLA
B) organization's
C) outsourcing
D) accepted

Accepted Answer

SLA (Service Level Agreement) is a documented agreement between a service provider and a customer that outlines the level of service expected. If the service provider's performance and costs do not meet the standards defined in the SLA, financial penalties can be assessed and the contract can be terminated.

Question 14

Firms considering outsourcing need to spend considerable time and effort to thoroughly review the outsourcing firm's ____ audit and ensure that they understand the firm's control goals and implementations.
A) ISO 17799
B) ISO 70
C) SAS 17799
D) SAS 70

Accepted Answer

SAS 70 (Statement on Auditing Standards No. 70) is a widely recognized auditing standard that evaluates an outsourcing firm's control objectives and activities. It is crucial for a company considering outsourcing to review the outsourcing firm's SAS 70 audit report thoroughly to ensure that the outsourcing firm has implemented appropriate controls and has met regulatory requirements. The other options (A) ISO 17799 and (C) SAS 17799 are not valid auditing standards, and (B) ISO 70 does not exist.

Question 15

At least ____ months are required to gain experience with the service provider and work through various start-up issues so that a fair assessment can be made.
A) three
B) six
C) nine
D) twelve

Accepted Answer

Six months is a reasonable amount of time to gain sufficient experience with the service provider and work through any start-up issues, allowing for a fair assessment to be made. Three months might be too short, while nine or twelve months could be excessive.

Question 16

The most significant outsourcing risk is ____.
A) dealing with increased management complexity
B) legal risk management
C) dealing with increased production complexity
D) increased risk management

Accepted Answer

Dealing with increased management complexity is the most significant outsourcing risk as it can lead to communication challenges, cultural differences, and difficulty in maintaining quality control. Legal risk management and increased risk management are important considerations but are not the most significant risk in outsourcing. Dealing with increased production complexity may be a challenge but can be managed through proper planning and coordination.

Question 17

According to the Diamond Management and Technology Consultants 2006 outsourcing study,____ percent stated that their outsourcing expectations were exceeded.
A) 2
B) 12
C) 27
D) 47

Accepted Answer

The answer of According to the Diamond Management and Technology...

Question 18

____ has become a frequent management strategy to achieve lower costs,improve organizational focus,and upgrade capability.
A) Down sizing
B) Outsourcing
C) Offshoring
D) Outshoring

Accepted Answer

Outsourcing is a management strategy used by companies to achieve lower costs, improve focus on core competencies, and upgrade capabilities. It involves contracting with a third-party company to provide goods or services that would otherwise be provided in-house. This can be done domestically or internationally. Downsizing involves reducing the size of the workforce, while offshoring involves moving operations to another country. Outshoring is not a recognized management strategy.

Question 19

Before signing an outsourcing contract,an organization should ____ its existing service levels so that it knows how well the services are being delivered and it knows the associated costs.
A) investigate
B) record
C) benchmark
D) chart

Accepted Answer

Benchmarking involves comparing an organization's current performance to industry standards or competitors to identify areas of strength and weaknesses. By benchmarking its existing service levels, an organization can assess how well its services are delivered and their associated costs. This information is crucial before signing an outsourcing contract as it helps the organization to negotiate better deals and ensure that it receives quality services from the outsourcing provider.

Question 20

The details of an outsourcing arrangement are documented in a formal ____.
A) convention
B) agreement
C) contract
D) accord

Accepted Answer

The best choice is (C) contract as it is most commonly used in formal agreements between parties outlining the terms and conditions of the outsourcing arrangement. Convention, accord, and agreement are less commonly used in this context.

Quiz 4: Business Processing and IT Outsourcing

According to the Diamond Management and Technology Consultants 2006 outsourcing study,____ percent of outsourcing "buyers experienced an abnormal contract termination in the past year."

Three of the most frequently cited reasons for outsourcing are to ____.

The top reason to outsource is to ____.

____ requires dedicated,trained vendor relationship professionals to manage the working relationship between the organization and outsourcing service provider.

____ is an arrangement in which one company contracts with another organization to provide services that could be provided by company employees.

____ of an outsourcing contract involves formal and informal processes and rules to manage the relationship between the two organizations.

____ "frees up" a large amount of resources and management effort that can be redirected to other more strategic issues within the company.

When the people doing the work are located in another country,the arrangement is called ____ outsourcing.

____ processes typically have a direct impact on the organization's customers,are major cost drivers,or are essential for providing services.

A(n) ____ business process is one that provides valuable customer benefits,is hard for competitors to imitate,and can be leveraged widely across many products and markets.

Good ____ managers should have excellent communication,problem solving,and negotiation skills.

The ongoing tracking and measurement of important ____ enables the organization to use the data as feedback,so that each step in the outsourcing process can be improved based on the result of the project.

In a typical contract,if the service provider's performance and costs do not meet the ____ standards,financial penalties can be assessed and the contract can even be terminated.

Firms considering outsourcing need to spend considerable time and effort to thoroughly review the outsourcing firm's ____ audit and ensure that they understand the firm's control goals and implementations.

At least ____ months are required to gain experience with the service provider and work through various start-up issues so that a fair assessment can be made.

The most significant outsourcing risk is ____.

According to the Diamond Management and Technology Consultants 2006 outsourcing study,____ percent stated that their outsourcing expectations were exceeded.

____ has become a frequent management strategy to achieve lower costs,improve organizational focus,and upgrade capability.

Before signing an outsourcing contract,an organization should ____ its existing service levels so that it knows how well the services are being delivered and it knows the associated costs.

The details of an outsourcing arrangement are documented in a formal ____.