Chapter 19 Outsourcing in 21st
century
Question 1 What is a common approach using the professional expertise
within an organization to develop and maintain the organization's information
technology systems?
Offshore outsourcing
Insourcing
Outsourcing
Business process outsourcing
Question 2 Which of the following is the most commonly outsourced
service?
Finance and Accounting
Facilities Management
Information Technology
Human Resources
Question 3 Reducing costs in the primary reason that companies outsource
services?
True
False
Question 4 Which of the following is a benefit an organization can
receive from outsourcing?
Reduced operating expenses
Access to advanced technologies
Reduced time to market for products
or services
All of the above
Question 5 Human resources is the most common outsourced function.
True
False
Question 6 Which of the following is an outsourcing challenge caused by
contract length?
Difficulties in getting out of a
contract
Problems in foreseeing future issues
Problems in reforming an internal IT
department
All of the above
Question 7 Globalization is an influential driver affecting the growth of
outsourcing.
True
False
Question 8 All of the following are challenges of outsourcing, except:
Contract length
Confidentiality
Quality
Competitive edge
Question 9 Which of the following is the primary reason why companies
outsource?
Reduce costs
Eliminate the need to reinvest in
technology
Tap outside sources of expertise
Reduce head count
Question 10 What is an arrangement by which one organization provides a
service or services for another organization that chooses not to perform them
in-house?
Offshore outsourcing
Outsourcing
Business process outsourcing
Insourcing
Question 11 Companies that outsource services reduce their costs but still
grow at the same pace of companies that do not outsource.
True
False
Question 12 What is engaging another company within the same country for
services?
Insourcing
Offshore outsourcing
Onshore outsourcing
Nearshore outsourcing
Question 13 What is using organizations from developing countries to write
code and develop systems?
Nearshore outsourcing
Onshore outsourcing
Insourcing
Offshore outsourcing
Question 14 Insourcing is an arrangement by which one organization provides
a service or services for another organization that chooses not to perform them
in-house.
True
False
Question 15 Which of the following is the least common function outsourced?
Finance and Accounting
Information Technology
Marketing/sales
Human Resources
Question 16 Offshore outsourcing is using organizations from developing
countries to write code and develop systems.
True
False
Question 17 Which of the following are the influential driver(s) affecting
the growth of outsourcing markets?
Core competencies
Rapid growth
Industry changes
All of the above
Question 18 Which of the following is the most uncommon reason why companies
outsource?
Better manage the costs of internal processes
Concentrate resources on core
business
Tap outside sources of expertise
Reduce headcount and related
expenses
Question 19 Outsourcing is a common approach using the professional
expertise within an organization to develop and maintain the organization's
information technology systems.
True
False
Question 20 What is contracting an outsourcing arrangement with a company in
a nearby country?
Insourcing
Onshore outsourcing
Nearshore outsourcing
Offshore outsourcing
