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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Here are the key terms from the chapter. The page where each term is first explained is in parentheses after the term. 1. Cloud computing (p. 60) 2. Enterprise resource planning (ERP) system (p. 59) 3. Outsourcing (p. 56) 4. Request for proposal (RFP) (p. 63) 5. Reuse (p. 64) Match each of the key terms above with the definition that best fits it. 1. The practice of turning over responsibility of some or all of an organization’s information systems applications and operations to an outside firm. 2. A system that integrates individual traditional business functions into a series of modules so that a single transaction occurs seamlessly within a single information system rather than several separate systems. 3. A document provided to vendors to ask them to propose hardware and system software that will meet the requirements of your new system. 4. The use of previously written software resources, especially objects and components, in new applications. 5. The provision of computing…
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