Outsourcing and Offshoring

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Questions and Answers

Which of the following best describes outsourcing?

  • A specialized business that focuses on specific tasks
  • A network of companies collaborating together
  • An overseas firm acting as a subcontractor for another country
  • A corporation turning over responsibility for production to independent suppliers (correct)

What is the fundamental reason for outsourcing?

  • To take advantage of specialization in different parts of the world (correct)
  • To expand the company's network
  • To increase efficiency by streamlining processes
  • To reduce costs by hiring cheaper labor

What does Enterprise Application Architecture aim to automate?

  • Processes that are only internal to the organization
  • Processes related to information systems
  • Processes that span multiple business functions and organizational levels (correct)
  • Processes within a single division of a company

What does ERP (Enterprise Resource Planning) system consolidate within a company?

<p>Every team within the company (A)</p>
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What are the factors included in the Leavitt Diamond model?

<p>Information technology use, organizational form, requisite people skills, business processes (B)</p>
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