Essentials of Systems Analysis and Design (6th Edition)
Essentials of Systems Analysis and Design (6th Edition)
6th Edition
ISBN: 9780133546231
Author: Joseph Valacich, Joey George
Publisher: PEARSON
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Chapter 2, Problem 1M
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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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