Management Information System (MIS) Practice Exam

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Prepare for the Management Information System Test. Boost your knowledge with flashcards and multiple choice questions, each question includes hints and explanations. Be exam-ready today!

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What is a potential benefit of outsourcing?

Increased control over all business processes.
Access to specialized skills and technologies.
Complete independence from third-party vendors.
Maintaining all functions within the domestic market.

The correct answer is: Access to specialized skills and technologies.

Outsourcing offers access to specialized skills and technologies, which is a significant benefit for organizations. By outsourcing certain tasks or functions to external vendors, companies can tap into specific expertise that may not be available in-house. This can lead to enhanced efficiency and quality, as external providers often have a focused knowledge base and the latest technological advancements in their respective fields. Additionally, outsourcing can provide cost savings, as organizations may find that utilizing specialized firms is more economical than developing those capabilities internally. The other options highlight misunderstandings about outsourcing. Increased control over all business processes is often a misconception, as outsourcing can lead to a loss of direct oversight. Complete independence from third-party vendors is not feasible when outsourcing, as it inherently involves collaboration with external entities. Lastly, maintaining all functions within the domestic market limits the benefits of outsourcing, including cost efficiency and access to global expertise.