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.

Question

Quizplus · Accepted Answer

When an organization outsources its IS/IT functions, it runs the risk of losing the knowledge and expertise of its own employees who were responsible for those functions. This knowledge loss, or loss of intellectual capital, can lead to challenges in managing and maintaining the outsourced systems, as well as the potential for a loss of competitive advantage. The other options (A, B, and D) are not risks of outsourcing IS/IT functions.

Which of the Following Is a Risk of Outsourcing Information