Software Development and Outsourcing

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Questions and Answers

A company is considering migrating its operations to a cloud-based platform. Which of the following is NOT a typical benefit they should expect?

Increased capital expenditure on computing infrastructure. (correct)
Reduced need for internal IT staff to manage infrastructure.
Faster deployment and access to applications.
Access to corporate-quality applications at a potentially lower cost.

Which of the following scenarios best illustrates the use of Software as a Service (SaaS) in a cloud computing environment?

A developer downloading the source code of an open-source project to customize for a client.
A company purchasing and installing a server to host its internal applications.
An organization hiring external consultants to build a custom software solution from the ground up.
A marketing team utilizing SalesForce.com to manage customer interactions and track sales leads. (correct)

An IT manager is evaluating whether to adopt open-source software or purchase commercial licenses for a new project. What is a key consideration that would favor choosing open-source?

Desire to avoid reliance on community-driven development and updates.
Requirement for a comprehensive warranty and liability coverage from the software provider.
The ability to freely access and modify the software's source code. (correct)
The need for guaranteed, immediate support from the software vendor.

A company decides to use in-house development for a critical business application. Which potential challenge should they anticipate compared to purchasing a commercial solution?

Potentially greater ongoing need for maintenance and updates handled by their own staff. (C) Signup and view all the answers

A software company offers a free version of its software and a paid, more feature-rich version. How does this business model leverage open-source principles?

By using the free version as a marketing tool to drive sales of the full-featured version. (B) Signup and view all the answers

When evaluating off-the-shelf software, which action BEST helps ensure the selected software meets the specific needs of a new system?

Submitting a Request for Proposal (RFP) to multiple vendors and scoring each item requested. (C) Signup and view all the answers

What is the PRIMARY purpose of a Request for Proposal (RFP) in the context of software acquisition?

To solicit detailed proposals from vendors, outlining how their software can meet specific system requirements. (B) Signup and view all the answers

Why is it important to test software against selection criteria BEFORE making a final purchase decision?

Testing validates that the software performs as expected and meets the defined requirements. (A) Signup and view all the answers

Gathering information from other users of the software is important. What insight can be gained from this?

Understanding real-world performance and identifying potential issues not apparent in vendor demos. (C) Signup and view all the answers

A company is considering outsourcing its software development. Which factor is LEAST relevant when making this decision?

Current copyright laws. (D) Signup and view all the answers

Which of the following scenarios best illustrates the concept of outsourcing in the context of information systems?

A corporation contracts with a third-party provider to manage its entire network infrastructure and data centers. (D) Signup and view all the answers

A company is considering outsourcing its payroll processing. Which of the following is NOT typically a major reason for such a decision?

To increase direct control over payroll processes. (B) Signup and view all the answers

An organization wants to implement a new Enterprise Resource Planning (ERP) system. Considering the different software sources, which approach involves the highest degree of customization and integration with existing systems?

Developing a custom ERP system in-house. (A) Signup and view all the answers

Which software source allows organizations the most flexibility to modify and redistribute the software's code?

Open-source software. (A) Signup and view all the answers

A startup company with limited capital needs a Customer Relationship Management (CRM) solution. Which software source is most suitable if they want to minimize upfront costs and quickly deploy the system?

Cloud computing (D) Signup and view all the answers

Which approach offers the LEAST amount of control over the final product?

Cloud computing. (A) Signup and view all the answers

Which of the following correctly orders the software sources from LEAST flexible to MOST flexible, in terms of customization options?

Cloud computing, packaged software, enterprise software, IT services, open-source software, in-house development (B) Signup and view all the answers

Which of the following best describes the primary function of IT service firms as described?

Developing and maintaining customer information systems for internal use by other companies. (C) Signup and view all the answers

An organization requires a highly specialized software solution that is not available as off-the-shelf software or through cloud providers. They also need to integrate this solution tightly with their existing legacy systems. Which software source would be MOST suitable in this scenario?

In-house development. (C) Signup and view all the answers

Which of the following is a characteristic of 'off-the-shelf' software?

They typically meet around 70% of an organization's needs. (C) Signup and view all the answers

How do Enterprise Resource Planning (ERP) systems primarily benefit businesses?

By integrating business functions into modules within a unified information system. (A) Signup and view all the answers

What is the significance of having a single data repository in an Enterprise Resource Planning (ERP) system?

It ensures data consistency and accuracy across the organization. (A) Signup and view all the answers

Which of the following companies is primarily known for providing IT services rather than packaged software solutions?

Accenture (B) Signup and view all the answers

An organization requires a system that integrates all its business functions into a seamless, unified platform. Which type of software solution would best meet this need?

Enterprise Resource Planning (ERP) System (C) Signup and view all the answers

A small business needs accounting software that is ready to use immediately with minimal setup. Which type of software would be the most suitable?

Packaged 'off-the-shelf' software. (C) Signup and view all the answers

Which of the following exemplifies a benefit derived specifically from employing cloud computing services, as opposed to traditional on-premise solutions?

Scalability of resources based on demand, without significant upfront investment in hardware. (C) Signup and view all the answers

An organization is deciding between developing a software solution in-house versus purchasing an off-the-shelf package. Besides initial expenses (licensing fees), which long-term cost factor should be primarily considered?

Ongoing maintenance, updates, and user support, which can accumulate significantly over the software's lifespan. (B) Signup and view all the answers

A company requires a new CRM system that will interact with many other systems in the enterprise. They are evaluating `Enterprise-wide solutions vendors`. What is a key factor that should be considered when choosing that option?

The level of customization needed to ensure seamless integration with existing systems. (D) Signup and view all the answers

An organization with limited IT staff wants to implement a basic accounting software package. The supported task is generic. Which sourcing option would be MOST suitable?

Cloud computing, for instant access and minimal internal IT burden. (D) Signup and view all the answers

A company adopted an open-source solution. After the initial setup, they find that internal staff spend considerable time configuring and maintaining the software. What should they have considered BEFORE choosing this option?

The level of internal expertise required to manage and customize open-source software and the availability of that expertise. (C) Signup and view all the answers

A project team is evaluating different off-the-shelf software packages. They discover one option has all the essential features, but its user documentation is outdated and unclear. What impact should team consider?

The team should consider the increased training and support costs, potentially outweighing the software's benefits. (B) Signup and view all the answers

A small business with limited IT capabilities needs to implement an e-commerce platform. They lack in-house developers and require a quick setup. Which sourcing strategy would be MOST appropriate?

Adopting a <code>cloud-based e-commerce platform</code>, as it offers quick setup, minimal IT overhead, and scalable resources. (B) Signup and view all the answers

An organization implemented a new CRM system from an 'enterprise-wide solutions vendor'. Six months later, they discover several critical features are missing, hindering sales team productivity. What could have prevented this?

Thoroughly defining and documenting mandatory, essential, and desired system features during the selection process. (C) Signup and view all the answers

A company is considering using an IT services firm to develop a custom application. Which of the following considerations is MOST crucial in this scenario?

Whether the application requires custom support that cannot be built internally based on available resources. (A) Signup and view all the answers

Flashcards

Outsourcing?

Turning over responsibilities for some or all of an organization’s IS applications and operations to an outside firm.

Reasons for outsourcing?

Freeing up internal resources, increasing revenue potential, reducing time to market, increasing process efficiencies, and outsourcing noncore activities.

IT services firms

Companies that specialize in providing IT services, including system integration, custom software development, and IT consulting.