Sabella Cycles declared bankruptcy in 2013 and has since closed 5 outlets,or approximately 25% of its locations.Sabella needs to reduce the costs of operating the firm's information systems.To accomplish this,Sabella might decide to
A)replace the existing system with one of a smaller scale.
B)customize the existing system.
C)outsource system operations.
D)purchase a canned software system.

Question

Quizplus · Accepted Answer

Outsourcing system operations would allow Sabella to reduce the costs of operating their information systems. By outsourcing, Sabella can rely on external IT expertise to maintain their systems and reduce their internal costs. Additionally, this may also allow them to access more advanced technologies and expertise than they could otherwise afford in-house. Replacing or customizing the existing system would require significant upfront costs and may not necessarily result in long-term savings. Purchasing a canned software system may also not be the most cost-effective solution as they may still need to hire additional IT staff to maintain and customize the system to their needs.

Sabella Cycles Declared Bankruptcy in 2013 and Has Since Closed