An outsource vendor changes its strategic direction. Under which of the following outsourcing risks can this be associated?
A) de facto sole source
B) superfluous chief information officer (CIO)
C) diseconomies of scale
D) loss of control

Question

Quizplus · Accepted Answer

A change in the strategic direction of an outsource vendor can lead to a loss of control for the client as they may be forced to adapt to new processes or technologies that may not align with their business goals. This risk is associated with the loss of control outsourcing risk.

An Outsource Vendor Changes Its Strategic Direction