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)Organisations opting for outsourcing cannot gain economies of scale.

Question

Quizplus · Accepted Answer

By outsourcing information systems, vendors may gain access to critical knowledge and information about the outsourcing company, which could be used to the vendor's advantage or even sold to competitors. This can pose a major risk to the outsourcing company's competitive advantage and intellectual property.

Which of the Following Is a Risk of Outsourcing Information