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Question

When an organisation gives contract for development of software, it has to give data to the service provider. In cases, the ownership of data should be _____________.

A
Transferred to the service provider
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B
With the client/organisation that outsource services
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C
Shared by both parties
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D
Not transferred
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Solution

The correct option is C With the client/organisation that outsource services

When an organisation gives contract for development of software, it has to give data to the service provider. In cases, the ownership of data should be with the client/organisation that outsource services.

Outsourcing is "an agreement in which one company contracts-out a part of existing internal activity to another company". It involves the contracting out of a business process and operational, and/or non-core functions to another party.

Outsourcing refers to the transfer of a business activity or function from a client/customer to a local or foreign third party service provider. Examples of commonly outsourced activities include: IT services; delivery, logistics and distribution services; human resources services; sales and marketing services; procurement services; customer call centre services; and finance and accounting services.

When services are outsourced to offshore providers, a customer faces increased costs and risks compared to solutions involving on-shore resources. Offshore outsourcing, though potentially more cost-effective, may involve hidden costs including: a more expensive and lengthy step of vendor selection, a longer (3-12 month) timeframe to complete work handover to the offshore partner, severance and costs related to layoffs of local employees who will not be relocated internationally. Turnover cost, and costs associated with addressing language and other communications or cultural differences.


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