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 CIO
C) diseconomies of scale
D) loss of control

Question

Quizplus · Accepted Answer

A change in strategic direction by an outsourced vendor can lead to a loss of control for the organization outsourcing the services. The vendor may prioritize their new strategic direction over the needs and priorities of the organization, resulting in a breakdown of communication, decreased quality of service, and overall dissatisfaction.

An Outsource Vendor Changes Its Strategic Direction