Which of the following is a risk of outsourcing information systems (IS)/information technology (IT) functions?
A) It is easier to end an agreement between a vendor and an organization that hired the vendor.
B) It provides the hiring organization with too many choices.
C) It involves the potential loss of intellectual capital.
D) It invariably results in diseconomies of scale.
E) the vendor and organization will share the same goals.

Question

Quizplus · Accepted Answer

Outsourcing IS/IT functions can result in the loss of intellectual capital as knowledge and expertise may be transferred to the vendor. This can make it difficult for the organization to retain control over its systems and data, and may also leave it vulnerable to security breaches and data breaches. Therefore, organizations should carefully consider the potential risks before outsourcing any IS/IT functions.

Which of the Following Is a Risk of Outsourcing Information