Question 1

The initial reason organizations outsourced IT was which one of the following?

Accepted Answer

The main reason organizations outsourced IT initially was to reduce costs. By outsourcing, companies could save money on infrastructure, hardware, software, and personnel expenses, as outsourcing providers could offer more affordable solutions.

Question 2

Organizations chose to outsource IT activities for all of the following reasons EXCEPT:

Accepted Answer

Outsourcing IT activities is generally done to achieve cost savings, consolidate data centers, infuse cash into the company and support capacity on demand. However, outsourcing IT activities would not be done to create a core competency as this would require developing in-house expertise and capabilities rather than outsourcing them to a third-party provider.

Question 3

Outsourcing to a company located in the same time zone is referred to as this type of sourcing.

Accepted Answer

Nearshoring refers to outsourcing to a company located in the same time zone or nearby region.

Question 4

Outsourcing providers have more experience dealing with a large number of IS staff and as a result,are often good at doing all of the following EXCEPT:

Accepted Answer

Outsourcing providers generally focus on hiring IT workers for long-term employment rather than short-term employment. Retaining IT workers for short-term employment is not a strength of outsourcing providers.

Question 5

Ensuring a cultural fit with an outsourcing provider is especially important when an organization is considering which one of the following?

Accepted Answer

Offshoring involves hiring an outsourcing provider in a different country, often with a different culture and customs. Ensuring a cultural fit becomes crucial in such scenarios to prevent any miscommunications or misunderstandings that may affect the project's outcome.

Question 6

This is when an IS organization uses contractor services,or even builds its own data center in a distant land.

Accepted Answer

Offshoring refers to the practice of outsourcing services or processes to a foreign country, often with the aim of taking advantage of lower labor costs or specialized expertise. This can include setting up a subsidiary or office in another country, or working with third-party vendors or service providers based overseas.

Question 7

The newest sourcing option for today's IT organizations is:

Accepted Answer

Cloud computing is the newest sourcing option for IT organizations, allowing access to computing resources and services over the internet. Cloud computing eliminates the need for physical infrastructure and can be easily scaled up or down as needed. It also offers flexibility and cost-effectiveness, making it a popular choice for IT organizations.

Question 8

To provide potential customers an idea of an outsourcing provider's development capabilities,the Software Engineering Institute developed this rating.

Accepted Answer

The Capability Maturity Model (CMM) is the rating system developed by the Software Engineering Institute that provides an idea of an outsourcing provider's development capabilities. It consists of five levels ranging from initial (level 1) to optimized (level 5) and evaluates the maturity of the organization's processes.

Question 9

Organizations may shy away from cloud computing because _________

Accepted Answer

Organizations may shy away from cloud computing due to increased concerns about the security and privacy of their data. Cloud computing involves storing data on third-party servers, which can make some organizations hesitant about its safety.

Question 10

In 1989,Kodak chose a(n) _____ approach to outsourcing IS activities and chose to work with suppliers like IBM,DEC and Businessland.This approach was soon dominated by other firms.

Accepted Answer

The mention of Kodak working with multiple suppliers (IBM, DEC, and Businessland) indicates a multivendor approach to outsourcing IS activities.

Question 11

The most common driver for insourcing is to:

Accepted Answer

The most common driver for insourcing is to keep core competencies in-house. This means that the company wants to maintain control over its most valuable capabilities and not outsource them to external vendors or contractors. By doing so, the company ensures that it has the necessary skills and expertise to develop and maintain its systems and products, and it can also protect its intellectual property rights. Keeping core competencies in-house can also help the company to adapt to changing market conditions and customer needs more quickly and efficiently. Therefore, choice E is the best option.

Question 12

Kellwood,the American apparel maker,decided to consolidate and bring IT operations back in-house in order to reduce costs.Kellwood choose which of the following strategies?

Accepted Answer

Backsourcing refers to the process of bringing outsourced functions back in-house. Thus, Kellwood's decision to consolidate and bring IT operations back in-house is an example of backsourcing.

Question 13

If a company decides to make and develop IS,they are using this type of sourcing.

Accepted Answer

Insourcing refers to the practice of developing IS in-house instead of outsourcing the task to a third-party vendor. This allows the company to have more control over the development process and the resulting IS.

Question 14

All of the following are risks associated with IS outsourcing EXCEPT:

Accepted Answer

Realized cost savings is actually a potential benefit of IS outsourcing, not a risk.

Question 15

In East Asia,a small cluster of countries,namely China,Malaysia and Korea,are creating a reputation for this type of outsourcing.

Accepted Answer

Nearshoring refers to outsourcing to nearby countries or regions to reduce costs while maintaining proximity for better collaboration and communication. China, Malaysia, and Korea are located in East Asia and are seen as nearshoring locations for many companies, especially in the tech industry.

Question 16

The functions of an entire data center can be replaced by which one of the following cloud computing providers?

Accepted Answer

Infrastructure as a Service (IaaS) provides the necessary hardware and infrastructure for computing, storage, and networking, allowing organizations to virtualize their data center and run their applications and services on the cloud. Therefore, IaaS can replace the functions of an entire data center.

Question 17

IT organizations will outsource which one of the following IT activities?

Accepted Answer

IT organizations can outsource various IT activities such as programming, IT transactions, knowledge-based business processes, and data storage to third-party service providers. Outsourcing allows the organization to focus on core business operations and reduces infrastructure and operational costs. Therefore, option E is the best choice as it includes all the mentioned IT activities.

Question 18

iCloud is an example of which one of the following?

Accepted Answer

iCloud is a cloud computing service, which allows users to store and access data, including photos, videos, music, documents and other files, on remote servers. Users can access their data from any device with an internet connection. iCloud is a prime example of cloud computing, where storage and processing resources are provided over the internet instead of locally on the user's device.

Question 19

Which one of the following is a driver for outsourcing?

Accepted Answer

Ease of transition to new technologies is a driver for outsourcing as it allows companies to leverage external expertise and resources to adopt new technologies more efficiently.

Question 20

The purchase of a good or service that was previously provided internally,or that could be provided internally,is called:

Accepted Answer

Outsourcing refers to the practice of purchasing goods or services from an external supplier that were previously provided internally or could be provided internally. This can be done for a variety of reasons, including to reduce costs, improve efficiency, or access specialized expertise. Insourcing, in contrast, refers to the practice of providing goods or services internally that were previously provided by an external supplier. Inshoring and offshoring both refer to the practice of relocating business functions to different geographic locations - inshoring typically refers to moving operations to nearby or neighboring countries, while offshoring usually involves moving operations to more distant locations in order to take advantage of lower labor costs. Nearsourcing is a relatively new term that refers to outsourcing closer to home, sometimes in the same country or region, in order to overcome some of the drawbacks of offshoring, such as language barriers and time zone differences. However, the most appropriate answer to the given question is outsourcing.

Quiz 9: Sourcing Information Systems Around the World