Which of the characteristics below is not an advantage of complete outsourcing?
The buyer has more influence on the choice of material.
Complete outsourcing takes a limited amount of the time and effort of the buyer.
The buyer has minimal responsibility for the coordination of activities that are performed by the host firm.
The purchaser does not need to have any experience with similar projects.
Which of the statements below, about outsourcing, is not correct?
An important characteristic of outsourcing is that, for a longer period, an intensive relationship will exist between the parties involved.
Turnkey outsourcing applies when the responsibility for the execution of the entire function, or activities, lies with the external provider.
With partial outsourcing the buyer has partial influence on prices, rates and costs of the client.
With Turnkey outsourcing, the outsourcing organization is responsible for the management of the program.
Which of the statements below, about the advantages and disadvantages of outsourcing, is not correct?
An advantage is: optimal use of knowledge, equipment and experience of the external partner.
An advantage is: continuous monitoring and control of the supplier relationship.
A disadvantage is: an increasing dependence on suppliers.
A disadvantage is: the risk of losing essential knowledge.
Consider the statements below about the reason underlining the decision of a company to outsource an activity:
I. Strategic reasons are getting access to resources, that are not available internally, and improving the performance of processes.
II. Outsourcing specialist activities occurs when an organization lacks expertise on the required level, or on an acceptable cost level.
Both statements are correct.
Both statements are incorrect.
Statement I is correct and Statement II is incorrect.
Statement I is incorrect and Statement II is correct.
Which of the statements about the outsourcing process is not correct?
During the strategic phase, a company needs to answer three essential questions: why? what? and who?
For a transaction approach, the internal cost for each activity is compared with the cost when an activity is outsourced.
According to the core competence theory, all non-core competencies need to be acquired from the market.
Cutting edge activities are activities that correlate directly with core competencies.
Which of the statements about the transition phase is not correct?
The transaction phase contains contracts negotiations and the execution, and transfer, of activities.
The organization and interaction of people are the most vital parts of contract negotiation.
A cost reimbursable contract means that the supplier performs activities at a predetermined hourly rate, sometimes in combination with a fixed percentage for covering overhead costs.
The usage of fines and bonuses, in a contract, is considered a critical success factor for the result of the outsourcing agreement.
Which of the characteristics below is not a success factor for outsourcing?
Understanding the company goals.
A solid and structured contract.
Acknowledgement of the different cultures in a company.
Support and involvement of senior management.
Which of the characteristics below is different for outsourcing and subcontracting?
A focus on core competencies.
Transferring activities to low wage countries.
Transferring resources ( and in some cases people) to an external party.
All of the above
Which of the risks listed below is not an example of risks related to outsourcing?
The technical risk that a supplier may not be equipped to deliver the desired functionality and performance.
The contractual risk that, when the supplier may not live up to the expected performance, the buyer can not fine the supplier.
The performance risk that the supplier may not have enough flexibility and capacity.
The risk that the supplier may not comply with the legal environment restriction.
Offshoring is a special type of outsourcing. Which of the characteristics below is not a characteristic of offshoring?
A focus on core competencies.
Transferring activities to low wage countries
Transferring resources ( and in some cases people) to an external party