Which of the following statements is a characteristic of outsourcing?
A) Management should have expertise on a subject before it can decide to outsource.
B) An outsource vendor transfers the responsibility of risk management to the development group.
C) To achieve quality, it is easier to hire another vendor than it is to fire and rehire internal staff.
D) Outsourcing leads to increased financial risk.

Question

Quizplus · Accepted Answer

Outsourcing can be seen as a way to achieve quality or reduce costs, but it is not necessarily easier to hire another vendor than it is to fire and rehire internal staff. It is important to select a vendor that has the expertise and resources to deliver the required services. When outsourcing, risk management is important, and the development group must take responsibility for managing risks associated with the outsourced activity. Outsourcing can lead to increased financial risk if the vendor fails to deliver the expected results or if the contract is not structured properly. Therefore, it is important to carefully evaluate the potential benefits and risks before deciding to outsource.

Which of the Following Statements Is a Characteristic of Outsourcing