Question 1

Using outsourcing providers frees up a business's employees so that they can devote their energies to core competencies for the business.

Accepted Answer

Outsourcing allows a business to delegate non-core tasks to external providers, freeing up the company's employees to focus on their main areas of expertise and core competencies. This can lead to increased efficiency and productivity for the business.

Question 2

This was the first country to make IT outsourcing a total industry.

Accepted Answer

The answer of This was the first country to make...

Question 3

The reasons given for backsourcing are similar to the reasons given for outsourcing in the first place.

Accepted Answer

The reasons listed for backsourcing may include cost savings, control over operations, and quality issues, which are similar to the reasons companies initially chose to outsource.

Question 4

Outsourcing an IT infrastructure will always save an organization money.

Accepted Answer

Outsourcing an IT infrastructure may not always lead to cost savings for an organization. Depending on the size and complexity of the organization, it may be more cost-effective to maintain an in-house IT team. Additionally, outsourcing may come with other costs such as communication and coordination expenses, loss of control over IT processes, and potential data security risks.

Question 5

To reduce its dependence on a single outsourcing provider,an organization will seek flexibility and take a "best-of-breed" approach.What is the term used to describe this use of multiple outsourcing vendors?

Accepted Answer

The answer of To reduce its dependence on a single...

Question 6

This is the most widely used form of cloud computing.

Accepted Answer

The answer of This is the most widely used form...

Question 7

This is the most traditional approach to sourcing.

Accepted Answer

The answer of This is the most traditional approach to...

Question 8

If a company decides to outsource to a company in another country that is close in proximity as well as culturally,economically,and politically similar,they are using this type of outsourcing

Accepted Answer

The answer of If a company decides to outsource to...

Question 9

Outsourcing decisions can be difficult and expensive to reverse because of:
A) Cultural differences.
B) The complicated infrastructure and staffing considerations.
C) Data security.
D) Data loss.
E) CMM.

Accepted Answer

Outsourcing decisions involve determining the appropriate infrastructure, staffing considerations, and resources required for the task at hand. These considerations can be difficult and costly to reverse, so it is important to carefully evaluate the outsourcing decision before committing resources to it. Cultural differences, data security, data loss, and CMM are also important considerations, but they are not as closely tied to the ability to reverse outsourcing decisions.

Question 10

What is it called when a company brings IS capabilities that were previously outsourced back in-house?
A) Backsourcing
B) Insourcing
C) Software as a Service
D) Nearshoring
E) Cloud computing

Accepted Answer

Backsourcing is the process of bringing previously outsourced services or capabilities back in-house. This can occur for a variety of reasons, such as a desire for greater control, cost savings, or changes in business strategy.

Question 11

To manage control yet realize the financial benefits that come with outsourcing,firms have created these subsidiaries to operate on their behalf and provide services.

Accepted Answer

The answer of To manage control yet realize the financial...

Question 12

More highly developed countries tend to offer higher levels of skills at lower costs.

Accepted Answer

More highly developed countries tend to have higher labor costs due to better living standards and stronger economies, making the cost of skills more expensive compared to less developed countries.

Question 13

Which of the following makes countries attractive for offshoring?
A) English language proficiency.
B) Political stability.
C) Economic stability.
D) Countries with friendly relationships.
E) All of the above.

Accepted Answer

All of the options listed make countries attractive for offshoring. English language proficiency ensures ease of communication, political stability ensures an environment in which businesses can operate without fear of upheaval or disruption, and economic stability ensures a steady stream of business for years to come. Friendly relationships between countries can help to create an environment in which businesses can operate without fear of political or economic retaliation. All of these factors combine to make a country an attractive location for offshoring.

Question 14

This is a type of captive center that performs core business processes for a parent company and outsources noncore work offshore.
A) Hybrid Captive
B) Shared Captive
C) Divest Captive
D) Terminated Captive
E) Core Captive

Accepted Answer

A hybrid captive is a type of captive center that performs core business processes for a parent company and outsources noncore work offshore. This allows the parent company to maintain control over the core processes while taking advantage of cost savings by outsourcing noncore work to a low-cost location.

Question 15

Cloud computing is a form of outsorcing in which IT services are provisioned over the __________.

Accepted Answer

The answer of Cloud computing is a form of outsorcing...

Question 16

Explain the options a company has when the quality of work done by an outsourcing firm is no longer satisfactory.

Accepted Answer

The answer of Explain the options a company has when...

Question 17

Only large,multi-national organizations pursue outsourcing arrangements.

Accepted Answer

Small and medium-sized businesses also pursue outsourcing arrangements to save costs and streamline operations.

Question 18

Explain how an IS outsourcing provider is able to derive savings that companies themselves cannot realize.

Accepted Answer

The answer of Explain how an IS outsourcing provider is...

Question 19

This is the formal contract between clients and an outsourcing provider that describes the expected performance of the service.

Accepted Answer

The answer of This is the formal contract between clients...

Question 20

The global outsourcing market is growing.

Accepted Answer

According to various reports and research, the global outsourcing market is growing steadily.

Quiz 9: Sourcing Information Systems Around the World