Homework answers / question archive / Chapter 13: Choices in Systems Acquisition   TRUE/FALSE        1)   Outsourcing is a concept that might encompass more than just commissioning the development of an application

Chapter 13: Choices in Systems Acquisition   TRUE/FALSE        1)   Outsourcing is a concept that might encompass more than just commissioning the development of an application

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TRUE/FALSE

 

     1)   Outsourcing is a concept that might encompass more than just commissioning the development of an application.

 

 

     2.   In the IT arena, outsourcing has three meanings.

 

 

     3.   The greatest advantage of tailored applications is their low cost.

 

 

     4.   Offshoring has caused layoffs of programmers in Western countries and created much bitterness among those professionals and supporters of local labor.

 

 

     5.   The pace of developments in IT might require less expertise within many organizations.

 

 

     6.   There is a peculiar—and paradoxical—aspect to IT outsourcing: while contracts are signed for long periods of time, they typically involve rapidly changing technologies.

 

 

     7.   In-house development teams can usually complete a new application project in less time than an IT vendor can.

 

 

     8.   There are conditions under which organizations should avoid outsourcing.

 

 

     9.   Innovative ISs, especially those intended to give their owners a competitive advantage, should not be outsourced.

 

 

   10.   In recent years, enterprise applications have constituted a far larger part of IT expenditures on packaged software.

 

 

   11.   Customization of large applications is inexpensive and nearly risk-free.

 

 

   12.   Vendor selection criteria include functionality, architectural fit, price, services, and support.

 

 

   13.   An ASP installs software on a client’s computers.

 

   14.   Since no provider can guarantee 100 percent uptime, ASPs routinely promise 90 percent uptime.

   15.   Companies that are growing fast and rely on software for deployment of their operations often hire the services of ASPs.

 

 

   16.   Authorities usually deal with unauthorized use of computers as theft.

 

 

   17.   Interfacing user-developed applications with other organizational systems should be discouraged.

 

MULTIPLE CHOICE

 

     1.   There are generally four alternatives to in-house development: ____, licensing, using software as a service (SaaS), and having users develop the system.

a.	outsourcing	c.	tracking
b.	resourcing	d.	supplying

 

 

 

     2.   If ____ do not offer the desired IS and it can be developed by non-IT employees, then this would usually be the chosen alternative.

a.	ISPs	c.	WISPs
b.	ASPs	d.	programmers

 

 

 

     3.   If the cost-accounting procedures of a particular company are so specific that no commercially available software can perform them, the company must develop ____, or tailored, software.

a.	own-interface	c.	custom-designed
b.	similar	d.	adapted

 

 

 

     4.   An important downside is that ____ software is less likely to be compatible with other organizations’ systems.

a.	licensed	c.	purchased
b.	open-source	d.	custom-designed

 

 

 

     5.   Contracts for ____ software development might also be incompatible with some development methods, such as agile methods.

a.	licensed	c.	rented
b.	open source	d.	outsourced

 

 

 

     6.   IT companies that made their reputation by providing hardware and software, such as ____ and Unisys, have seen the revenue from the outsourcing service portion of their business grow faster than the revenue from hardware and software sales.

a.	Microsoft	c.	IBM
b.	Adobe	d.	Dell

 

 

 

     7.   Among the largest IT service providers are ____, EDS, Accenture, Computer Sciences Corp. (CSC), Unisys, First Data, AT&T, Capgemini, Perot Systems, and Hewlett-Packard.

a.	Microsoft	c.	Dell
b.	IBM	d.	Compaq

 

 

 

     8.   ____ allows a client to know exactly what the cost of its IS functions will be over the period of the contract, which is usually several years.

a.	Outsourcing	c.	Customization
b.	In-house development	d.	Adaptation

 

 

 

     9.   Professional IS firms often pay discounted prices for ____ tools and other resources, based on volume purchases; they can pass these savings on to their clients.

a.	CASE (computer-aided software engineering)
b.	CAD (computer-aided design)
c.	CAM (computer-aided manufacturing)
d.	2GL

 

 

 

   10.   In-house IS salaries and benefits and expensive capital expenditures for items such as ____ tools are paid whether or not the IS staff is productive.

a.	programming
b.	CASE (computer-aided software engineering)
c.	LCD monitors
d.	2GL

 

 

 

   11.   ____ allows clients to tap into one of the greatest assets of an IT vendor: experience gained through work with many clients in different environments.

a.	Licensing	c.	Outsourcing
b.	In-house development	d.	Open source

 

 

 

   12.   Outsourcing ____ or core business ISs incurs more risk than outsourcing the routine tasks of operational ISs.

a.	financial	c.	databases
b.	customer	d.	strategic

 

 

 

   13.   Risks of outsourcing are higher at ____ of decision making.

a.	lower levels	c.	higher levels
b.	the accounting level	d.	the network management level

 

 

 

   14.   Clients should not expect vendors to list the service level and ____; the clients must do it.

a.	measurements	c.	degrees
b.	metrics	d.	quality

 

 

 

   15.   Any service that is not included in a(n) ____, or is mentioned only in general terms, leaves the door open for the vendor not to render it, or not to render it to a level expected by the client.

a.	contract	c.	agenda
b.	roster	d.	mission statement

 

 

 

   16.   ____ software applications include ERP, SCM, and CRM applications and typically cost millions of dollars.

a.	Large	c.	Inventory
b.	Basic	d.	Project

 

 

 

   17.   When ____ a software package, the buyer gains several benefits: immediate system availability, high quality, low price (license fee), and available support.

a.	outsourcing	c.	commissioning
b.	licensing	d.	developing

 

 

 

   18.   Many companies find that they must have packaged software such as ERP and ____ applications modified to meet their specific needs.

a.	spreadsheet	c.	SCM
b.	word processing	d.	DBMS

 

 

 

   19.   ____ software is developed for the widest common denominator of potential user organizations.

a.	Commissioned	c.	In-house developed
b.	Outsourced	d.	Ready-made

 

 

 

   20.   The project manager sends a ____ to the vendors identified, requesting general, somewhat informal information about a product.

a.	request for proposal (RFP)	c.	request for comments (RFC)
b.	request for quotation (RFQ)	d.	request for information (RFI)

 

 

 

   21.   The project management team prepares a ____, a document specifying all the system requirements and soliciting a proposal from each vendor contacted.

a.	request for comments (RFC)	c.	request for proposal (RFP)
b.	request for quotation (RFQ)	d.	request for information (RFI)

 

 

 

   22.   The “____” approach seems to be attracting a growing clientele of mainly small and medium corporations, but some large ones also prefer this option.

a.	software on demand	c.	software full-time
b.	software part-time	d.	office on demand

 

 

 

   23.   Experts recommend that organizations look for ASPs that can guarantee ____ uptime—for critical applications.

a.	three nines— 99.9 percent	c.	five nines— 99.999 percent
b.	four nines— 99.99 percent	d.	six nines— 99.9999 percent

 

 

 

   24.   Typically, ____ is fairly simple and limited in scope.

a.	in-house-developed software	c.	licensed software
b.	user-developed software	d.	commissioned software

 

 

 

   25.   To ensure compatibility with other applications within an organization, the organization’s IT professionals should adopt and supply ____ tools to interested users.

a.	in-house development	c.	commissioned development
b.	licensed development	d.	standard development

 

 

 

   26.   ____ software closely conforms to an individual unit’s subculture, which makes the transition to a new system easier for employees.

a.	User-developed	c.	Licensed
b.	Commissioned	d.	In-house

 

 

   27.   ____ free IS staff to develop and maintain an organization’s more complex and sophisticated systems.

a.	In-house-developers	c.	User-developers
b.	Commissioned software	d.	Licensed software

 

 

 

COMPLETION

 

     1.   If non-IT employees cannot develop an IS, the choice might then be to ____________________ the development of the IS.

 

 

     2.   ____________________ in general means hiring the services of another organization or individual to perform some of the work that otherwise would be performed by you or your employees.

 

 

     3.   Many North American and European countries have outsourced development of well-defined applications to professionals in other countries, an act often referred to as ____________________.

 

 

     4.   When a business outsources only routine business processes, such as customer order entry or human resource transactions, the practice is sometimes called ____________________.

 

     5.   Outsourcing allows a client to know exactly what the cost of its IS functions will be over the period of the contract, which is usually several years. This allows for better ____________________ planning.

 

     6.   Studies show that saving ____________________ is not the most common reason for outsourcing.

 

     7.   The most important element of an outsourcing agreement for both parties, but mostly for the client, is what professionals call the ____________________.

 

 

     8.   It is in the ____________________’s interest to have as specific a contract as possible.

 

     9.   Large developers often distribute prerelease versions, called ____________________ of software to be tested by companies that agree to use the application with actual data for several months.

 

 

   10.   Companies must take extra care to ensure that ____________________ software truly complies with company needs, including organizational culture.

 

 

   11.   Before finalizing the purchasing decision, the system should be tested using ____________________, which is comparing actual performance against specific quantifiable criteria.

 

 

   12.   An organization that offers the use of software through communication lines is called a(n) ____________________.

 

 

   13.   Some clients prefer to use a leased line rather than the ____________________ to connect to an ASP.

 

 

   14.   ____________________ is the proportion of time that the ASP’s systems and communication links are up and running.

 

 

   15.   The proliferation of desktop computers and easier-to-use development tools in the workplace has been a major stimulus in application development by ____________________.

 

 

   16.   Lack of ____________________ makes system maintenance difficult at best and impossible at worst.

 

 

   17.   ____________________ law states that an employee might use an employer’s computer services for his or her own purpose without permission if no damage is caused and if the value of supplies and computer services does not exceed $100.

 

ESSAY

 

     1.   List the advantages and disadvantages of custom-designed applications.

 

     2.   Provide examples of typical outsourced IT services.

 

     3.   What is a request for proposal (RFP)?

 

     4.   Name at least five important factors to be considered in selecting a software vendor.

 

     5.   List the benefits and risks to renting and using software through the Web.