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ISDS 3130 LSU ONLINE SCHWARZ EXAM 2 well answered to pass
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ISDS 3130 LSU ONLINE SCHWARZEXAM 2
IT outsourcing - correct answer ✔✔a process where an organization decides to contract out or sell the
firm's IT assets, people, and activities to a third-party vendor who provides and manages these assets
and services for a certain fee over a period of time
client - correct answer ✔✔the buyer is a firm that desires the technology and is also known as the
sourcing firm or outsource
vendor - correct answer ✔✔the seller is a firm that has the technology and is sometimes called the
source firm or the outsourcer
total outsourcing - correct answer ✔✔outsource all IT
advantages: consistency and stability with the same vendor for many activities and lower transaction
costs
disadvantages: vulnerable to vendor manipulation of pricing and maintenance costs and vulnerable to
loss of vendor support
transitional outsourcing - correct answer ✔✔outsource legacy systems while working on new systems
advantages: makes staff free to focus on new systems, legacy systems are mature and customers and
vendors understand, requirements and can write a sound contract
disadvantages: vulnerable to vendor manipulation of pricing and maintenance costs and vulnerable to
loss of vendor support if new system is delayed
selective outsourcing - correct answer ✔✔outsource some aspect of IT
advantages: select best of breed for an activity, create a competitive environment, flexible; adapt to
change, capitalize on organizational learning, less risky than total outsourcing
disadvantages: multiple vendors to manage and higher transaction costs associated with multiple
evaluations and contract negotiations
,reasons firms outsource - correct answer ✔✔- reduced IT costs
- improved technology and services
- business focus
- downsizing and rightsizing
- access to knowledge
- reduced capital expenditure
- vendor value proposition
IT nature - correct answer ✔✔- not a homogeneous function but comprises a wide variety of IT activities
- capabilities continue to evolve
- no simple basis for gauging IT economics
- large switching costs associated with IT sourcing decisions
client-vendor relationship - correct answer ✔✔solidified with a contract, performance management,
service level agreement; these 3 account for 72% of risks of outsourcing and the rest is dependent upon
the quality of partnership
trust - correct answer ✔✔degree of confidence and willingness between partners (partnership quality)
business understanding - correct answer ✔✔degree of understanding of behaviors, goals, and policies
between partners (partnership quality)
benefit/risk share - correct answer ✔✔degree of articulation and agreement on benefit and risk
between partners (partnership quality)
conflict avoidance - correct answer ✔✔degree of compatibility of activities, resource share, and goals
between partners (partnership quality)
commitment - correct answer ✔✔degree of the pledge of relationship continuity between partners
(partnership quality)
, outsourcing success - correct answer ✔✔- 2/3 outsourcing contracts fail
- 24% of companies will terminate their contracts
cloud survey - correct answer ✔✔- 18% of companies use public cloud
- 6% of companies use private cloud
- companies use 6 clouds on average; 3 public and 3 private
challenges of the cloud - correct answer ✔✔- lack of expertise
- security
- compliance
- managing multiple cloud services
- managing costs
- complexity of building a private cloud
- governance
- performance
cloud management assessments - correct answer ✔✔- sourcing
- purchasing
integration with portfolio
- usage
- when to get rid of
(governance)
management of cloud services - correct answer ✔✔- IT department
- departments themselves such as marketing and finance
- enterprise cloud service broker
- bring your own device
(governance)
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