Chapter 10 Questions Flashcards
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
CMM
Of the following list, the newest sourcing option for today’s IT organizations is:
Outsourcing
Insourcing
Farshoring
Cloud computing
Onshoring
Cloud computing
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
Hybrid Captive
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
Retaining IT workers for short-term employment
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.
Keep core competencies in-house.
The reasons given for backsourcing are similar to the reasons given for outsourcing in the first place.
True
False
True
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)
Infrastructure as a Service (IaaS)
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
Requiring more training of in-house staff
More highly developed countries tend to offer higher levels of skills at lower costs.
True
False
False
From the perspective of outsourcing clients, one of the best things about outsourcing are the 10-year long-term agreements.
True
False
False
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
multivendor
IT organizations will outsource which one of the following IT activities?
Programming.
IT transactions.
Knowledge-based business processes.
Data storage.
All of the above.
All of the above.
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
Backsource
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
Offshoring
The initial reason organizations outsourced IT was which one of the following?
Downsizing
Innovation
Cost reduction
Standardization
Capacity
Cost reduction
If a company decides to make and develop IS, they are using this type of sourcing.
Outsourcing
Cloud computing
Inshoring
Offshoring
Insourcing
Insourcing
Only large, multi-national organizations pursue outsourcing arrangements.
True
False
False
iCloud is an example of which one of the following?
Offshoring
Insourcing
Farshoring
Cloud computing
Backsourcing
Cloud computing
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.
of increased data security and privacy concerns.
Outsourcing decisions can be difficult and expensive to reverse because of:
Cultural differences.
The complicated infrastructure and staffing considerations.
Data security.
Data loss.
CMM.
The complicated infrastructure and staffing considerations.
Outsourcing an IT infrastructure will always save an organization money.
True
False
False
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
Outsourcing
Outsourcing of IT services began in 1949 with Eastman Kodak.
True
False
False
The global outsourcing market is growing.
True
False
True
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
Backsourcing
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
To create a core competency
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
Offshoring
Which of the following makes countries attractive for offshoring?
English language proficiency.
Political stability.
Economic stability.
Countries with friendly relationships.
All of the above.
All of the above.
