Outsourcing IT Functions 
Review Questions
Each question has only one correct answer.  Select either a,  b,  c,  d,  or  e.
#	Question	Answer - 
(Circle one only)	
1	Offsourcing is:
(a)	Outsourcing to a separate business unit within your own company,
(b)	Outsourcing to a business in another country that offers a competitive advantage,	
(c)	Outsourcing to a number of different companies,
(d)	All of the above,
(e) 	None of the above.	
a
b
c
d
e
	
2	In the second generation of IT outsourcing, businesses focused upon:
(a)	Gaining efficiency and reducing the cost of IT functions,
(b)	Forming investment partnership to match the capability of industry leaders,
(c)	Building commitment and trust in relationships with manufacturers,
(d)	All of the above,		
(e) 	None of the above.	
a
b
c
d
e	
3	IT functions that should not be outsourced include:
(a)	Service areas where the vendor is an specialist,
(b)	Management of the vendor,
(c)	Service areas that your business has difficulty recruiting good employees,
(d)	All of the above,		
(e) 	None of the above.	

a
b
c 
d
e	
4	An impact of outsourcing on a business will be:
(a)	IT managers will need to be more “hands-on”,
(b)	The IT department will have a totally different business model to the rest of the business,
(c)	Specialist vendors will offer faster response times in decision-making,
(d)	All of the above,
(e) 	None of the above.	
a
b
c 
d
e	
5	The impact of outsourcing on the IT department will include:
(a)	Improve emergency response where the contractor dedicates all available resources to your needs,
(b)	Stable costs with no variations in contract charges,
(c)	Responsibility for information security will remain with the outsourcing business,
(d)	All of the above,		
(e) 	None of the above.	
a
b
c 
d
e	

Provide short, clear and concise answers to the following questions- suggested length 60 words:

6.	What are the key questions to ask when considering outsourcing?

7.	Briefly discuss the evolution of the outsourcing of IT services.

8.	When considering outsourcing, why is it important to negotiate to retain the balance of power?

9.	What impacts will outsourcing have on an IT department?

10.	What criteria should be considered when selecting vendors for outsourcing?