Management Information System (MIS) Practice Exam

According to Nicholas Carr, cloud computing may reduce outsourcing because...

1. It allows complex internal systems to be managed simply.

2. It shifts the need for highly skilled labor in outsourcing.

3. It is customized per country, making outsourcing difficult.

4. It standardizes services globally, reducing outsourcing demand.

The correct answer is: It allows complex internal systems to be managed simply.

The assertion that cloud computing may reduce outsourcing due to its ability to allow complex internal systems to be managed simply aligns with Carr's perspective on the shift in how companies can handle their IT needs. Cloud computing centralizes resources and provides user-friendly interfaces that simplify management tasks. This ease of use empowers organizations to handle many operations internally that previously might have required external expertise. As companies become less reliant on specialized outsourcing for managing complex systems, they can gain greater control over their processes and reduce associated costs—ultimately making outsourcing less necessary. The other options, while they touch on aspects of cloud computing's impact, do not encapsulate Carr's viewpoint as effectively. The shift of skilled labor to the cloud (the second option) doesn't fundamentally reduce the need for outsourcing; rather, it changes the skill set required for those tasks. The notion that customization by country complicates outsourcing (the third option) overlooks the adaptability of cloud services which can easily be tailored to different regional requirements. Lastly, the idea that standardization lowers the demand for outsourcing (the fourth option) could apply in some contexts, but it does not represent the central theme of Carr's argument about internal management capabilities taking precedence over outsourcing reliance.