Which of the following is a risk of outsourcing IS/IT functions?
A) It gives undue authority to the CIO in the executive team.
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

Outsourcing IS/IT functions may involve sharing sensitive business information with a third party. Such information could include intellectual capital, which is the sum total of knowledge and skills possessed by an organization. In the event of an outsourcing termination, the organization may not have access to this knowledge, and it may be lost.

Which of the Following Is a Risk of Outsourcing IS/IT