ITPEC IP April 2018 Question 93
Which of the following is a term that means that the development and operation of a system is farmed out to an overseas company or an overseas subsidiary?
Explanation
Offshore outsourcing — contracting system development or operation out to a company or subsidiary abroad.
Outsourcing hands work to an outside provider; offshore means the provider is in another country. Companies do it mainly for lower labour costs or access to skilled engineers, and must manage the extra risks of distance, language, time zones and differing laws.
Answer (b)
Why not others:
- •(a) — hosting is renting server space and capacity in a provider's data centre, with no reference to where the provider is
- •(c) — onshore outsourcing uses a provider in the same country, the opposite of what is asked
- •(d) — system integration is a vendor taking on the whole job of planning, building and sometimes operating a system by combining hardware, software and services
Key rule: Outsourcing says who does the work (an external provider); onshore and offshore say where (at home or abroad).
System Strategy · AI-written, may contain errors
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