Management Information System (MIS) Practice Exam

Which statement would most weaken the decision to continue outsourcing customer service processes?

1. Most firms in the Philippines have been accused of poor working conditions.

2. The firm's prime competitor recently withdrew its outsourcing process.

3. Customers' complaints about the quality of service have risen dramatically over the past two years.

4. According to a company survey, most employees feel that they require extensive training.

The correct answer is: Customers' complaints about the quality of service have risen dramatically over the past two years.

The statement that customers' complaints about the quality of service have risen dramatically over the past two years directly indicates a deterioration in service performance, which can significantly impact customer satisfaction and loyalty. When outsourcing, companies often seek to leverage the skills and efficiencies of external service providers, but an increase in customer complaints suggests that the outsourcing arrangement may not be meeting expectations. If customers are expressing dissatisfaction, it raises concerns about the capabilities of the outsourced service provider and whether they are effectively addressing customer needs. This performance issue can undermine the rationale for continuing with the outsourcing decision, as it contradicts the objective of enhancing service quality and operational efficiency through outsourcing. Additionally, persistent complaints can harm the company's reputation, ultimately leading to a loss of customers and revenue. The other statements, while they may raise valid concerns, do not directly address the outcome of the outsourcing decision in terms of customer satisfaction and quality of service.