BelAir Has Developed and Run Its Own Information System for the Past

question 84

Multiple Choice

BelAir has developed and run its own information system for the past ten years.However,the company has now decided to outsource its information systems (IS) function to a service provider.Which of the following,if true,will strengthen BelAir's decision?

• A) BelAir's IS team developed the existing system from scratch and has ironed out most of the faults over the years.
• B) The service provider is highly recommended by its other clients.
• C) Most BelAir employees are familiar with the current information system.
• D) BelAir has seen a fall in its revenue over the last year.
• E) Outsourcing its IS function did not benefit BelAir's competitor, Amis Systems.

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Definitions:

Profit-Sharing Plans

A form of employee reward system where a company shares a part of its profits with its employees as a motivational and loyalty-enhancing tool.

Employee Supervision

The act of overseeing and guiding employees' work and performance by a manager or supervisor to ensure tasks and objectives are accomplished.

Group Commissions

A remuneration system where a team of employees earns commissions collectively based on the group's overall performance.

Competitive Bonus

An additional compensation provided to employees to incentivize superior performance, often used to remain attractive in a competitive job market.