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MIS 531 > Chapter 10 Questions > Flashcards

Chapter 10 Questions Flashcards

1
Q

To provide potential customers an idea of an outsourcing provider’s development capabilities, the Software Engineering Institute developed this rating.

Tier

IaaS

ISO9001

CMM

Six Sigma

A

CMM

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2
Q

Of the following list, the newest sourcing option for today’s IT organizations is:

Outsourcing

Insourcing

Farshoring

Cloud computing

Onshoring

A

Cloud computing

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3
Q

This is a type of captive center that performs core business processes for a parent company and outsources noncore work offshore.

Hybrid Captive

Shared Captive

Divest Captive

Terminated Captive

Core Captive

A

Hybrid Captive

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4
Q

Outsourcing providers have more experience dealing with a large number of IS staff and as a result, are often good at doing all of the following EXCEPT:

Marketing IS talent

Providing relevant technical training

Retaining IT workers for short-term employment

Hiring good IT professionals

Developing and sharing best practices

A

Retaining IT workers for short-term employment

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5
Q

The most common driver for insourcing is to:

Keep employees loyal to the company.

Make a system that cannot be bought.

Develop internal skill sets.

Maintain control over the development of the system.

Keep core competencies in-house.

A

Keep core competencies in-house.

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6
Q

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

True
False

A

True

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7
Q

The functions of an entire data center can be replaced by which one of the following cloud computing providers?

Software as a Service (SaaS)

Application Service Provider (ASP)

Platform as a Service (PaaS)

Infrastructure as a Service (IaaS)

Outsourcing as a Service (OaaS)

A

Infrastructure as a Service (IaaS)

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8
Q

All of the following are risks associated with IS outsourcing EXCEPT:

Loss of control

Dependency on outsourcing providers

Inadequate adaption of newer technologies

Requiring more training of in-house staff

Potential loss of competitive secrets

A

Requiring more training of in-house staff

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9
Q

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

True
False

A

False

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10
Q

From the perspective of outsourcing clients, one of the best things about outsourcing are the 10-year long-term agreements.

True
False

A

False

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11
Q

In 1989, Kodak chose a(n) _____ approach to outsourcing IS activities and chose to work with suppliers like IBM, DEC and Businessland. This approach was soon dominated by other firms.

offshore

multivendor

nearshore

centralized

full outsourcing

A

multivendor

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12
Q

IT organizations will outsource which one of the following IT activities?

Programming.

IT transactions.

Knowledge-based business processes.

Data storage.

All of the above.

A

All of the above.

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13
Q

Kellwood, the American apparel maker, decided to consolidate and bring IT operations back in-house in order to reduce costs. Kellwood choose which of the following strategies?

Outsource

Backsource

Offshore

Captive center

Farshore

A

Backsource

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14
Q

Ensuring a cultural fit with an outsourcing provider is especially important when an organization is considering which one of the following?

Offshoring

Insourcing

Onshoring

Cloud computing

Selective outsourcing

A

Offshoring

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15
Q

The initial reason organizations outsourced IT was which one of the following?

Downsizing

Innovation

Cost reduction

Standardization

Capacity

A

Cost reduction

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16
Q

If a company decides to make and develop IS, they are using this type of sourcing.

Outsourcing

Cloud computing

Inshoring

Offshoring

Insourcing

A

Insourcing

17
Q

Only large, multi-national organizations pursue outsourcing arrangements.

True
False

A

False

18
Q

iCloud is an example of which one of the following?

Offshoring

Insourcing

Farshoring

Cloud computing

Backsourcing

A

Cloud computing

19
Q

Organizations may shy away from cloud computing because _________

it does not support multiple time zones.

it costs more money than offshoring.

of increased data security and privacy concerns.

SLAs cannot be established.

short term contracts are required.

A

of increased data security and privacy concerns.

20
Q

Outsourcing decisions can be difficult and expensive to reverse because of:

Cultural differences.

The complicated infrastructure and staffing considerations.

Data security.

Data loss.

CMM.

A

The complicated infrastructure and staffing considerations.

21
Q

Outsourcing an IT infrastructure will always save an organization money.

True
False

A

False

22
Q

The purchase of a good or service that was previously provided internally, or that could be provided internally, is called:

Outsourcing

Insourcing

Inshoring

Offshoring

Nearsourcing

A

Outsourcing

23
Q

Outsourcing of IT services began in 1949 with Eastman Kodak.

True
False

A

False

24
Q

The global outsourcing market is growing.

True
False

A

True

25
Q

What is it called when a company brings IS capabilities that were previously outsourced back in-house?

Backsourcing

Insourcing

Software as a Service

Nearshoring

Cloud computing

A

Backsourcing

26
Q

Organizations choose to outsource IT activities for all of the following reasons EXCEPT:

To realize cost savings

To have access to specialists they do not have in-house

To create a core competency

To infuse cash into the company

To support capacity on demand

A

To create a core competency

27
Q

This is when an IS organization uses contractor services, or even builds its own data center, in a distant land.

Cloud computing

Insourcing

Inshoring

Offshoring

Nearsourcing

A

Offshoring

28
Q

Which of the following makes countries attractive for offshoring?

English language proficiency.

Political stability.

Economic stability.

Countries with friendly relationships.

All of the above.

A

All of the above.

MIS 531 (15 decks)

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