Management Information System (MIS) Practice Exam

What factor contributes to the decline in outsourcing according to Carr?

1. Workers not capable of handling complex systems.

2. Loss of need for customized services.

3. Shift from managing simple to complex systems.

4. Standardization lowering global costs.

The correct answer is: Shift from managing simple to complex systems.

The decline in outsourcing, according to Carr, is influenced by the shift from managing simple to complex systems. This transition means that businesses are now required to manage intricate technologies and systems that demand a greater level of expertise and nuanced understanding. As organizations evolve to utilize more sophisticated systems, the need for external outsourcing diminishes because they either develop the necessary skills internally or opt for more integrated solutions that are complicated to manage effectively when outsourced. On the other hand, the other factors mentioned do not encapsulate the primary rationale for the decline in outsourcing as identified by Carr. While workers’ capabilities, the need for customized services, and the effects of standardization have their own relevance in the context of outsourcing, they do not directly address the intricacies of evolving system complexity that influence a company’s decision to retain more control over its technology and operational processes. This nuance is crucial for understanding the contemporary challenges organizations face with outsourcing.