SIA 101 Midterm Exam

What is the primary reason companies pursue nearshore and offshore outsourcing?

• To access expertise

• To increase flexibility

• To save costs

• To meet time zone preferences

• To enhance security

Which of the following is NOT considered a benefit of outsourcing?

• Increased efficiency

• Lower internal infrastructure investment

• Slower turnaround time

• Access to innovation

• Focus on core competencies

What type of outsourcing involves hiring providers in neighboring countries?

• Offshore

• Nearshore

• Onshore

• Infrastructure outsourcing

• Application outsourcing

Which of the following IT services is commonly outsourced under infrastructure outsourcing?

• Legacy system maintenance

• Packaged software management

• Service desk capabilities

• New application development

• Software-as-a-service

What is the biggest advantage of outsourcing according to the presentation?

• Risk mitigation

• Time and cost savings

• Improved business knowledge

• Vendor profitability

• Cultural diversity

What is a Service Level Agreement (SLA)?

• A pricing document for outsourcing services

• A contract specifying measurable terms of service delivery

• A customer satisfaction survey

• A cost analysis report

• A vendor's internal training guide

Which type of outsourcing typically aims to reduce production costs for manufacturers?

• Application outsourcing

• HR outsourcing

• Onshore outsourcing

• Supply chain outsourcing

• Cloud computing outsourcing

What is a significant risk associated with outsourcing?

• Accelerated market entry

• Language and cultural barriers

• Access to intellectual property

• Increased efficiency

• Enhanced innovation

Which approach combines services from multiple best-of-breed vendors?

• Onshore outsourcing

• Wholesale outsourcing

• Multi-vendor outsourcing

• Outsourced application management

• Nearshore outsourcing

What is essential for managing an outsourcing portfolio effectively?

• Sole reliance on technical expertise

• Elimination of SLAs

• Engagement of a project management office

• Avoidance of partnerships

• Prioritization of low costs over quality