Exam 4: Business Processing and IT Outsourcing

Organizations that move to smart sourcing recognize that outsourcing is not just about lowering labor costs.

____________________ service providers typically have a lower cost structure due to greater economy of scale,specialization,or expertise.

____ is an arrangement in which one company contracts with another organization to provide services that could be provided by company employees.

What questions should an organization ask to separate core business processes from less critical processes?

The top reason to outsource is to ____.

According to the Diamond Management and Technology Consultants 2006 outsourcing study,____ percent of outsourcing "buyers experienced an abnormal contract termination in the past year."

The ongoing tracking and measurement of important ____ enables the organization to use the data as feedback,so that each step in the outsourcing process can be improved based on the result of the project.

When entering into a(n)____________________ outsourcing agreement,it is critical to determine what legal system and which country will have jurisdiction over any contract disputes.

____ processes typically have a direct impact on the organization's customers,are major cost drivers,or are essential for providing services.

Many organizations contract with service providers to handle complete business processes such as accounting and finance,customer services,human resources,and even research and development,in what is called ____________________ outsourcing.

The fundamental costs of doing business in a developed country are much lower than those in a developing country.

Three of the most frequently cited reasons for outsourcing are to ____.

Before signing an outsourcing contract,an organization should ____ its existing service levels so that it knows how well the services are being delivered and it knows the associated costs.

Instead of entering into all-encompassing outsourcing contracts with a single firm,organizations are opting for simpler,more business-specific arrangements that employ multiple service providers.

____ has become a frequent management strategy to achieve lower costs,improve organizational focus,and upgrade capability.

Many organizations hesitate to outsource processes that are considered ____________________ critical,that are tightly linked to other key processes,that clearly differentiate them from the competition,or that strongly influence sales.

When the people doing the work are located in another country,the arrangement is called ____ outsourcing.

Outsourcing is not feasible for small projects because of prohibitive costs.

The development of an outsourcing contract is a job for experienced procurement and ___________________ professionals.

According to a 2006 Brown-Wilson Group survey,Infosys was the highest rated outsourcing firm.