Deck 13: Choices in Systems Acquisition

Question 1

Offshoring has caused layoffs of programmers in Western countries and created much bitterness among those professionals and supporters of local labor.

Answer 1

True

Question 2

An application service provider (ASP) installs software on a client's computers.

Answer 2

False

Question 3

In-house development teams can usually complete a new application project in less time than an IT vendor can.

Answer 3

False

Question 4

The greatest advantage of tailored applications is their low cost.

Question 5

Customization of large applications is inexpensive and nearly risk-free.

Question 6

A paradoxical aspect to IT outsourcing is that while contracts are signed for long periods of time,they typically involve rapidly changing technologies.

Question 7

Innovative information systems,especially those intended to give their owners a competitive advantage,should not be outsourced.

Question 8

There are situations under which organizations should avoid outsourcing.

Question 9

If the cost-accounting procedures of a particular company are so specific that no commercially available software can perform them,the company must develop software.

A)own-interface
B)dynamic code
C)custom-designed
D)adapted

Question 10

In the IT arena,outsourcing has a single meaning.

Question 11

When end users develop applications,they should be encouraged to develop applications that interface with other organizational systems.

Question 12

The concept in which an application service provider offers the use of computer programs through a network (the Internet or private network) is known as .

A)security as a service (SECaaS)
B)software as a service (SaaS)
C)infrastructure as a service (IaaS)
D)platform as a service (PaaS)

Question 13

Companies that are growing fast and rely on software for deployment of their operations often hire the services of ASPs.

Question 14

Authorities usually deal with unauthorized use of computers as theft.

Question 15

Vendor selection criteria include functionality,architectural fit,price,services,and support.

Question 16

Since no provider can guarantee 100 percent uptime,ASPs often promise 99.9 percent uptime.

Question 17

In the IT arena,hiring the services of another company to manage all or parts of the services that otherwise would be rendered by an IT unit of the organization is known as .

A)outsourcing
B)licensing
C)tracking
D)benchmarking

Question 18

For many companies,IT is not their core competency and should not be a focus of their efforts.

Question 19

In recent years,enterprise applications have constituted a far larger part of IT expenditures on packaged software.

Question 20

Outsourcing is a concept that might encompass more than just commissioning the development of an application.

Question 21

When a client outsources,management knows how much the outsourced services will cost,which eliminates____________________.

A)transaction risks
B)miscalculation risks
C)compliance risks
D)legal risks

Question 22

Outsourcing __________ISs incurs more risk than outsourcing the routine tasks of operational ISs.

A)global
B)customer
C)geographic
D)strategic

Question 23

Clients should not expect vendors to list the service level and__________ ;the clients must do it.

A)quantity
B)metrics
C)degrees
D)quality

Question 24

One of the drawbacks of the software on demand approach is that it__________ .

A)increases implementation time significantly
B)reduces the control clients have over their systems
C)relies on storage hardware at the client location for installation
D)requires clients to hire experts to maintain the systems

Question 25

__________software is developed for the widest common denominator of potential user organizations.

A)Commissioned
B)Outsourced
C)In-house developed
D)Ready-made

Question 26

IT companies that provide both hardware and software have seen revenue from__________ service portion of their business grow faster than from the sale of hardware and software.

A)licensing software
B)tailoring software
C)outsourcing
D)user-development

Question 27

One of the risks of software licensing is the__________ .

A)increased duration for system availability and implementation
B)low quality of software
C)difficulty in modifications to meet specific needs
D)lack of after-sales support

Question 28

Companies that provide IT services are commonly called __________.

A)dealers
B)vendors
C)users
D)clients

Question 29

Duplication of applications is one of the major drawbacks of__________ .

A)user development
B)outsourcing
C)licensing
D)using software as a service

Question 30

__________allows a client to know exactly what the cost of its IS functions will be over the period of the contract,which is usually several years.

A)Outsourcing
B)In-house development
C)Customization
D)Adaptation

Question 31

__________include ERP,SCM,and CRM applications and typically cost millions of dollars.

A)Enterprise software applications
B)Basic software applications
C)Inventory software applications
D)Project software applications

Question 32

When __________a software package,the buyer gains several benefits such as immediate system availability,high quality,low price,and available support.

A)outsourcing
B)licensing
C)commissioning
D)developing

Question 33

A disadvantage of__________ software applications is that they are less likely to be compatible with other organizations' systems.

A)licensed
B)open-source
C)purchased
D)custom-designed

Question 34

_____ allows clients to take advantage of the vendor's experience that the vendor hasgained through work with many clients in different environments.

A)Licensing
B)In-house development
C)Outsourcing
D)User development

Question 35

When requesting vendor bids,the project management team prepares a__________ ,a document specifying all the system requirements and soliciting a formal plan from each vendor contacted.

A)request for comments (RFC)
B)request for quotation (RFQ)
C)request for proposal (RFP)
D)request for information (RFI)

Question 36

An advantage of outsourcing IT services is that it__________ .

A)reduces license and maintenance fee
B)increases control over IT operations
C)ensures the security of trade secrets
D)lengthens implementation cycles

Question 37

When soliciting vendor details,the project manager sends a __________to the vendors identified,requesting general,somewhat informal information about a product.

A)request for proposal (RFP)
B)request for quotation (RFQ)
C)request for comments (RFC)
D)request for information (RFI)

Question 38

Among the methods for system development, __________is clearly the best option for many small companies.

A)software on demand
B)in-house development
C)purchasing software
D)outsourcing

Question 39

Contracts for __________software development might be incompatible with agile development methods.

A)licensed
B)open source
C)rented
D)outsourced

Question 40

Risks of outsourcing are high for __________IS services.

A)payroll
B)accounting
C)core competence
D)network management

Question 41

__________software closely conforms to an individual unit's subculture,which makes the transition to a new system easier for employees.

A)User-developed
B)Commissioned
C)Licensed
D)In-house

Question 42

Companies should not rely on end users to develop applications that __________.

A)will be used briefly and discarded
B)are needed immediately
C)are vital for the organization's survival
D)can be maintained by the users themselves

Question 43

Typically,__________ is fairly simple and limited in scope.

A)in-house-developed software
B)user-developed software
C)licensed software
D)commissioned software

Question 44

Before licensing a particular software package,the company should test the system using __________, which is comparing actual performance against specific quantifiable criteria.

Question 45

The practice of outsourcing routine activities,such as customer order entry or human resource transactions,is called_____.

Question 46

Many North American and European countries have outsourced development of well-defined applications to professionals in other countries,an act often referred to as__________ .

Question 47

Outsourcing allows a client to know exactly what the cost of its IS functions will be over the period of the contract,which is usually several years.This allows for better __________.

Question 48

The most important element of an outsourcing agreement for both parties,but mostly for the client,is what professionals call the__________ .

Question 49

Large developers often distribute prerelease versions,called__________ ,of software to be tested by companies that agree to use the application with actual data for several months.

Question 50

Studies show that __________is not the most common reason for outsourcing.

Question 51

Instead of spending money on the purchase of data storage devices,a company can contract with a(n)__________ and have all or some of its files stored remotely on the provider's devices.

Question 52

In________,nonprogrammer users write their own business applications.

Question 53

__________in general means hiring the services of another organization or individual to perform some of the work that otherwise would be performed by the hiring organization or its employees.

Question 54

In user development of applications,the lack of__________ makes system maintenance difficult at best and impossible at worst.

Question 55

To ensure compatibility with other applications within an organization,the organization's IT professionals should adopt and supply_________tools to interested users.

A)in-house development
B)licensed development
C)commissioned development
D)standard development

Question 56

It is in the__________ interest to have as specific a contract as possible.

Question 57

__________is the proportion of time that the ASP's systems and communication links are up and running.

Question 58

The greatest disadvantage of tailored applications is their __________.

Question 59

In order to overcome connectivity issues and reduce security risks,some clients prefer to use a(n)__________ rather than the Internet to connect to application service providers.

Question 60

An organization that offers the use of software through communication lines is called a(n) __________.

Question 61

List the benefits and risks to renting and using software through the Web.

Question 62

Name at least five important factors to be considered in selecting a software vendor.

Question 63

Provide examples of typical outsourced IT services.

Question 64

What is a request for proposal (RFP)?

Question 65

List the advantages and disadvantages of custom-designed applications.

Question 66

If someone from outside a company accessed the company's computer without authorization and used it for any purpose whatsoever,the act would be__________ under the laws of every state in the United States.