IS 4410 Chapter 11

Which of the following is true about outsourcing?

It saves both direct and indirect management time.

Organization of IS department

CIO reports directly to CEO. Sometimes to CFO. Heads information department.

Which of the following is NOT a function of the information systems department?

Conducting External Audits

Advantages of Outsourcing

Free management time, cost reduction and risk reduction.

Rights with regards to IS organization

Hardware and programs that are necessary, reliable network and systems, secure environment and effective training.

Which of the following is a risk of outsourcing IS/IT functions?

It involves the potential loss of intellectual capital.

Responsibilities with regards to IS organization

Learn basic computer skills, learn standard techniques, follow security procedures and installing and using only authorized material.

Disadvantages of Outsourcing

Loss of control, loss of intellectual capital, vendor priorities,

Function of IS department

Plan the use of IS, manage outsourcing relationships, protect information assets; develop, operate and maintain computer infrastructure and applications.

4 groups of IS department

Technology (CTO), Operations, Development and Outsourcing Relations.

What does each branch do?

Technology- investigates new technology, determines how to use. Operations- Manages computing infrastructure, responds to user problems. Development- Creates new IS and maintains existing ones. Outsourcing Relations- Manages negotiated contracts

When considering a merger, it is important that the company consider integration of information systems in the merged entities.

True

One of the reasons outsourcing is undertaken is to ________.

cap an organization's financial exposure