Why Do Cost Overrides with Outsourcing Occur More Frequently Than

question 84

Multiple Choice

Why do cost overrides with outsourcing occur more frequently than projected?

• A)Information technology is deemed a compatible system
• B)Client demands are outside of the standard vendor package
• C)Organizations are inexperienced with vendor selection
• D)Vendors will make contracts that are biased in their favour

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Definitions:

Red Herring

A fallacy or distraction that leads away from the main issue or argument, often used to mislead or divert attention.

Logical Fallacy

An error in reasoning that renders an argument invalid or undermines the logic of a discussion.

Analogy

A comparison between an unfamiliar idea, thing, or situation and something the audience already understands.

401(K) Retirement Plans

A tax-advantaged retirement savings plan offered by many employers in the United States, allowing employees to save a portion of their paycheck before taxes.