MCQ Outsourcing

1 ------------------------------ is a business practice in which a company hires another company or
an individual to perform tasks, handles operations

A Subcontracting
B outsourcing
C consulting
D manufacturing
2 in an outsourcing arrangement, what typically happens to the employees who currently do the
outsourced function in house
A they are fired.
B they quit or retire.
C they move to another company.
D they transfer to other functions.
3 why are specialized outsource vendors more efficient in their offering of training than many
organizations.
A outsources can achieve economies of scale.
B outsource can charge for every transaction
C outsourcers can maximize their capital
D outsourcers can provide uninterrupted service
4 why do cost overrides with outsourcing occur more frequently than what is projected
A information technology is deemed a compatible system

B clients demand are outside of the standard vendor package
C organisations are inexperienced with vendor selection
D vendors will make contracts that are biased in their favour
5 why it is important to outsource transactional work

A because it adds value to non – core activities
B because it frees up management time
C because it reduces transaction time
D because it is repetitive , predictable , and easily duplicated
6 what are the two most frequent cases of outsourcing problems
A reduction of costs , vendor incompetence
B excessive time , lack of technology
C organizational politics , reduced employee morale
D poor service definition, weak management processes
7 why many western nations outsourced activities to India

A increasing pool of outsourcing companies
B large English speaking population
C relatively stable legal system
D committed and loyal workforce
8 which of the following characteristics is not typically used to help determine whether an
organization should outsource
A reliant on technology
B routine activity frequently undertaken.
C achieves cost effectiveness.
D deliverable from remote sites
9 why do large organizations rarely outsource their entire HR departments?

A Outsourcers specialize in market niches and so no one company does all functions
B organizations do not wish to relinquish total control over all HR functions.
C organizations have different cultures than their outsourcing vendors
D outsourcers need to be monitored and this extra time has associated costs
10 which core competency does Nike retain in house while outsourcing nearly everything else
A product design
B financial analysis
C customer service
D employee recruitment
11 what can a company do to reduce the risk of an outsourcing company entering the market and
becoming a competitor?
A outsource non-core work
B erect strategic blocks
C establish trust.
D monitor the outsource arrangement.
12 when rumours of potential outsourcing plans surface in an organization what might mangers
expect next
A productivity losses
B customer service disruptions
C media attention
D more formal conversation
13 which of the following is not a function of the evaluation team in an outsourcing decision?
A analyze bids.
B apply due diligence
C choose vendor
D negotiate contract
14 what percentage of HR professionals resist outsourcing because they worry about loosing
their jobs
A one – tenth
B one – quarter
C one – third
D one – half
15 outsourcing could be
A project based
B technology based
C manufacturing
D all of the above
16 in which year outsourcing became an integral part of international business
A 1980
B 1982
C 1990
D 1991
17 what percentage of company outsource cut costs

A 20
B 27
C 33
D 34
18 why outsourcing is needed

A risk management
B cost saving
B improve quality
C cost restructuring
D all of the above
19 most commonly outsourced activities

A information technology
B recruitment
C logistics
D all of the above
20 outsourcing becomes part of strategy if it is

A reducing the operating costs
B because it is better than subcontracting
C new skills are costly
D none of the above
21. What does a stay – back team perform
A. It negotiates the outsourcing contract
B. It conducts a cost benefit analysis
C. It moniters the Outsourcing arrangement
D. It selects the outsourcing vendor
22. Which is one of the primary risks associated with outsourcing
A. Increased costs
B. Decreased employee morale
C. Impact on public relations
D. Loss of strategic control
23. Which of the following activity is not likely to be outsourced
A. Rule based
B. Repitive
C. Frequently undertaken
D. Unpredictable
24. Which of the following HR function are mostly like to be outsourced
A. Performance management
B. Recruiting
C. Succession management
D. Organizational change
25. What is the first step in managing outsourcing
A. Cost benefit analysis
B. Selecting the vendor
C. Negotiating the contract
D. Monitoring the arrangement

MCQ Outsourcing

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1 ------------------------------ is a business practice in which a company hires another company or

an individual to perform tasks, handles operations

A information technology is deemed a compatible system

5 why it is important to outsource transactional work

7 why many western nations outsourced activities to India

9 why do large organizations rarely outsource their entire HR departments?

17 what percentage of company outsource cut costs

18 why outsourcing is needed

19 most commonly outsourced activities

20 outsourcing becomes part of strategy if it is

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