Which of the following might encourage an organisation to outsource their IT function?
A.
When there is a limited manufacturing capacity
B.
If the outsourcing solution increases the costs
C.
If there is limited finance investment and resource
D.
When there is an internal conflict within the company
The Answer Is:
C
This question includes an explanation.
Explanation:
Organisations may choose to outsource IT when they have limited financial investment capability and internal resources. Outsourcing allows access to specialist expertise, up-to-date technology, and scalable services without the need for large capital expenditure. Limited manufacturing capacity is irrelevant to IT, increased costs would discourage outsourcing, and internal conflict is not a valid sourcing rationale. Ethical and responsible sourcing requires outsourcing decisions to be based on clear business needs, value creation, and risk management, ensuring continuity of service and effective use of organisational resources.