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8610: Information Management Systems - Pearlson > Chapter 10: Information Systems Sourcing > Flashcards

Chapter 10: Information Systems Sourcing Flashcards

1
Q

what are the four (4) key questions when considering Information systems sourcing?

A
  1. Make
  2. Buy
  3. How (What Products/Services)
  4. Where (Where abroad?)
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2
Q

When an organization decides to create to run its applications on its own computers or in the cloud as a result of one of the information systems sourcing questions.

A

Make

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3
Q

When an organization decides to obtain its applications from an outside provider or providers as a result of one of the information sourcing systems questions.

A

Buy

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4
Q

The following actions are for which information sourcing question?
Include the scope of the outsourcing and the steps that should be taken to ensure its success.

A

How

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5
Q

The following decision is for which information sourcing question?
whether the client company should work with an outsourcing provider (i.e., vendor) in its own country, offshore, or in a cloud

A

Where

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6
Q

What’s the last step once all sourcing decisions have been made?

A

Unhappy/Review

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7
Q

What types of activities or products are typically considered when sourcing IS?

A
  1. Applications
  2. Systems
  3. Help Desk Support
  4. Telecommunications
  5. Data Centers
  6. Business Processes
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8
Q

Make =

A

Insourcing

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9
Q

Buy =

A

Outsource

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10
Q

Providing IS services or developing them in the company’s own in‐house IS organization and/or in its local cloud.

A

Insourcing

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11
Q

What are the five (5) most common reasons organizations decide to make/insource

A
  1. To keep core competencies in‐house
  2. So a firm can concentrate on its core competencies
  3. Security
  4. confidentiality
  5. Resources
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12
Q

What is the major risk of insourcing?

A

Requires management attention and resources

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13
Q

An overseas subsidiary that is created to serve its main “client,” the parent company, but it may serve other clients as well.

A

Captive Center

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14
Q

What are the three most common types of captive centers

A
  1. Basic
  2. Shared
  3. Hybrid
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15
Q

Type of captive center that provides services only to the parent firm

A

Basic

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16
Q

Type of captive center that performs work for both a parent company and external customers.

A

Shared

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17
Q

Type of captive center that performs the more expensive, higher‐profile, or mission‐critical work for the parent company and outsources the more commoditized work that is more cheaply provided by an offshore provider

A

Hybrid

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18
Q

Purchasing a good or service that was previously provided internally or that could be provided internally but is now provided by outside providers.

A

Outsourcing

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19
Q

What is the primary motivation for outsourcing?

A

Reducing Costs

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20
Q

What are the three (3) primary factors that favor an a decision to outsource,.

A
  1. Lower costs due to economies of scale
  2. Ability to handle processing peaks
  3. Need to consolidate data centers.
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21
Q

Outsourcing providers derive savings from?

A

Economies of Scale

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22
Q

How do outsourcing providers achieve economies of scale that the client company cannot? (3 Reasons)

A
  1. Centralized data centers
  2. Preferential contracts with providers
  3. Large pools of technical expertise
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23
Q

The outsourcing provider’s larger pool of resources allows them?

A

Leeway in assigning available capacity to its clients on demand

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24
Q

Outsourcing may also offer an infusion of cash by?

A

Selling its equipment and/or buildings to the outsourcing vendor

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25
Q

If an organization does not have employees with the training, experience, or skills in‐house to successfully implement new technologies, it should consider?

A

Outsourcing

outsourcing providers generally have larger pools of talent

with more current knowledge of advancing technologies and best practices.

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26
Q

Outsourcing providers also have an added advantage

A

because they can specialize in IS services.

providers’ extensive experience in dealing with IS professionals

helps them to understand how to hire, manage, and retain IS staff effectively.

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27
Q

What are the seven (7) risks when outsourcing?

A
  1. Clients must surrender control
  2. Adequate anticipation of new technological capabilities when negotiating outsourcing contracts
  3. Risks the potential loss of competitive advantage
  4. High dependence on the outsourcing provider
  5. Harder to protect competitive secrets
  6. Provider’s culture or operations may be incompatible
  7. Savings may never be realized
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28
Q

risk of over‐reliance for any number of reasons typically increases as

A

the size of the outsourcing contract increases.

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29
Q

Increased volumes due to unspecified growth, software upgrades, or new technologies not anticipated in the contract may do what to the clients firm?

A

end up costing a firm considerably more than it anticipated when it signed the contract

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30
Q

What are the three major decisions about how to outsource successfully?

A
  1. Selection
  2. Contracting
  3. Scope
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31
Q

This (how) outsourcing decision focuses on finding compatible outsourcing providers whose capabilities, managers, internal operations, technologies, and culture complement those of the client company.

A

Selection

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32
Q

This (how) outsourcing decision focuses on securing formal outsourcing arrangements

A

Contracting

33
Q

Type of outsourcing agreement that defines the level of service to be provided, delivery time and expected performance of the service.

A

Service-Level Agreement

34
Q

This (How) outsourcing decision determines whether to pursue outsourcing fully or selectively with one (single sourcing) or more providers (multisourcing).

A

Scope

35
Q

When an enterprise outsources all its IS functions

A

Full Outsourcing

36
Q

When an enterprise outsources everything, how does it view IT

A

it does not view IT as a strategic advantage

37
Q

When an enterprise chooses which IT capabilities to retain in‐house and which to give to one or more outsiders

A

Selective Outsourcing

38
Q

This type of outsourcing reduces the client company’s reliance on outsourcing with only one provider, provides greater flexibility and offers better service due to the competitive market.

A

Strategic (Selective) Outsourcing

39
Q

When a company decides to use multiple providers when fully or selectively outsourcing practices what?

A

IT Multisourcing

40
Q

Delegating IT projects and services in a managed way to multiple providers who must work cooperatively to achieve the client’s business objectives.

A

IT Multisourcing

41
Q

What are the five (5) advantages of Multisourcing?

A
  1. Limits the risks associated with working with just one provider.
  2. Lowers IT service costs
  3. improves quality through best‐of‐breed services,
  4. Enhances flexibility
  5. Provides easier access to specialized IT expertise and capabilities
42
Q

What are the three (3) disadvantages of Multisourcing?

A
  1. Requires more coordination
  2. Finger-Pointing
  3. Unexpected competition among providers can hurt the client if not managed well
43
Q

Balancing provider cooperation and competition among the providers is called what?

A

Forced Coopetition

44
Q

What are the four (4) where outsourcing decisions?

A
  1. Onshore
  2. Offshore
  3. Cloud
  4. Crowd
45
Q

The dynamic provisioning of third‐party‐provided IT services over the Internet using the concept of shared services

A

Cloud Computing

46
Q

How can client companies realize cost savings through cloud computing?

A

by sharing the provider’s resources with other clients

47
Q

What are the three (3) advantages of cloud computing?

A
  1. Cheaper
  2. No Upfront Costs
  3. Flexible
  4. Scalable
48
Q

What are the three (3) disadvantages of cloud computing?

A
  1. overdependence
  2. Loss of control
  3. Security
49
Q

What are the five (5) cloud computing options?

A
  1. Private Cloud
  2. Community Cloud
  3. Hybrid Cloud
  4. Multi-Cloud
  5. Public Cloud
50
Q

This type of cloud infrastructure is when data are managed by the organization and remain within its existing infrastructure, or it is managed offsite by a third party for the organization in the third party’s private cloud

A

Private Cloud

51
Q

This cloud infrastructure is shared by several organizations and supports the shared concerns of a specific community

A

Community Cloud

52
Q

This cloud infrastructure combines two or more other clouds, with a combination of public and private clouds where the services are integrated with one another

A

Hybrid Cloud

53
Q

This cloud infrastructure icludes multiple clouds under centralized management with no distinction between private and public clouds, and none of the clouds need to work in combination

A

Multi-Cloud

54
Q

This cloud infrastructure is when data are stored outside of the corporate data centers in the cloud provider’s environment.

A

Public Cloud

55
Q

What are the 3 major types of public clouds?

A
  1. Software-as-a-service
  2. Infrastructure-as-a-service
  3. Platform-as-a-service
56
Q

Public Cloud type that provides infrastructure through grids or clusters or virtualized servers, networks, storage, and systems software designed to augment or replace the functions of an entire data center.

A

Infrastructure-as-a-service

57
Q

Public cloud type that provides software application functionality through a web browser.

A

Software-as-a-service

58
Q

Public Cloud type that provides services using virtualized servers on which clients can run existing applications or develop new ones without having to worry about maintaining the operating systems, server hardware, load balancing, or computing capacity

A

Platform-as-a-service

59
Q

A form of outsourcing that is provided by a very large number of individuals.

A

Crowdsourcing

60
Q

What are the two forms of crowdsourcing?

A
  1. Collaboration
  2. Tournament
61
Q

Type of crowdsourcing when individuals use social media to collectively create a common document or solution.

A

Collective Crowdsourcing

62
Q

Type of crowdsourcing that uses social media to solicit and collect independent solutions from a potentially large number of individuals but selects one or a few of the contributions in exchange for financial or nonfinancial compensation

A

Tournament Crowdsourcing

63
Q

Performing outsourcing work domestically (i.e., in the same country)

A

Onshoring/Inshoring

may be considered the “opposite” of offshoring.

64
Q

What are the two types of onshoring scope decisions?

A
  1. Selective
  2. Full
65
Q

Type of onshoring that hires outsourcing providers with operations in rural parts of the country.

A

Rural Sourcing

66
Q

Type of outsouring that occurs when the IS organization uses contractor services, or even its own hybrid captive center in a distant land

A

Offshoring

67
Q

What are the two (2) where abroad (offshoring) decisions?

A
  1. Nearshoring
  2. Farshoring
68
Q

A form of offshoring that involves sourcing service work to a foreign, lower‐wage country that is relatively far away in distance or time zone (or both).

A

Farshoring

69
Q

A form of offshoring that uses providers in foreign, lower‐wage countries that are relatively close in distance or time zones to the client company

A

Nearshoring

70
Q

To answer the where abroad question, client companies must consider what three (3) criteria?

A
  1. Attractiveness
  2. Level of development (Development Tiers)
  3. Cultural differences
71
Q

What seven (7) criteria make a country more attractive for outsourcing?

A
  1. Geographic orientation
  2. English Proficiency
  3. Political Risk
  4. Regulatory Restrictions
  5. Data Security
  6. Legal Systems
  7. Technical Infrastructure
72
Q

What model measures the level of proficiency of the development process within an IS organization?

A

Capability Maturity Model Integration (CMMI)

Level 1 is worst, level 5 is best

73
Q

How is the development tier determined

A
  1. Industrial Maturity
  2. Extent of Clustering
  3. Export Revenues.
74
Q

Tiered countries tend to offer higher levels of skills but also charge higher prices.

A

Development Tier 1

75
Q

Tiered countries, the software industries are mostly “cottage industries” with small, isolated firms

A

Development Tier 2

76
Q

A business practice in which a company takes back in‐house assets, activities, and skills that are part of its information systems operations and were previously outsourced to one or more outside IS providers

A

Backsourcing

may involve partial or complete reversal of an outsourcing contract

77
Q

A long‐term, purposeful “arrangement by which companies set up a web of close relationships that form a veritable system geared to providing product or services in a coordinated way.

A

Strategic Network

78
Q

An economic community supported by a foundation of interacting organizations and individuals—the organisms of the business world.

A

Business Ecosystem

8610: Information Management Systems - Pearlson (13 decks)

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