Which of the following is a risk of outsourcing information systems?
A) Vendors can gain access to critical knowledge of the outsourcing company.
B) Vendors are not subject to a contractual agreement with the outsourcing company.
C) The long-term costs of information systems are outweighed by their benefits.
D) Organizations opting for outsourcing cannot gain economies of scale.

Question

Quizplus · Accepted Answer

Outsourcing information systems can lead to vendors gaining access to critical knowledge of the outsourcing company. This puts the company at risk of losing their competitive advantage and could potentially harm their business operations.

Which of the Following Is a Risk of Outsourcing Information