Pearson eText for Essentials of Systems Analysis and Design -- Instant Access (Pearson+)
Pearson eText for Essentials of Systems Analysis and Design -- Instant Access (Pearson+)
6th Edition
ISBN: 9780137612420
Author: Joseph Valacich, Joey George
Publisher: PEARSON+
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Chapter 2, Problem 1M
Program Description Answer

The process of modifying the responsibility of an organization’s information system application to an outer firm is termed as outsourcing.

Hence, the correct option is “3”.

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Explanation of Solution

Outsourcing:

  • It is the process of transmission of jobs from inside of a firm to outside of a firm.
  • It doesn’t have any negative effect.
  • It includes entities like savings, minimum expenses, flexibility and many others.
  • Companies outsource to avoid problems such as high tax, labor cost, and production cost.
  • Another reason for outsourcing is the lack of resources.

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