Which of the following organizations faces higher switching costs?
A)an organization that wants to automate its processes
B)an organization that moves it data center to cloud storage
C)an organization that buys an information system to manage its own records
D)an organization that wants to switch to open-source software

Question

Quizplus · Accepted Answer

An organization that buys an information system to manage its own records faces higher switching costs because it involves significant investment in terms of time, money, and resources including staff training and customization. This system becomes an integral part of the organization and any switch would require a complete overhaul of the existing system, which is not only costly but also time-consuming.

Which of the Following Organizations Faces Higher Switching Costs