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2.1 Outsourcing vs Cloud

Quiz by Richard Love

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20 questions
Show answers
  • Q1
    What is a primary advantage of both outsourcing and cloud computing?
    Increased Complexity
    Limited Control
    Exclusivity
    Cost Efficiency
    30s
  • Q2
    Which aspect allows businesses to concentrate on their core competencies?
    Higher Initial Investment
    Increased Risk
    Focus on Core Business
    Limited Scalability
    30s
  • Q3
    What do both outsourcing and cloud computing provide?
    Ownership of Equipment
    High Upfront Costs
    Access to Expertise
    Limited Flexibility
    30s
  • Q4
    Which term describes the ability to adjust services as business needs change?
    Cost Stability
    Scalability
    Complexity
    Standardization
    30s
  • Q5
    What type of risk is shared with service providers in both models?
    Performance Risk
    Ownership Risk
    Risk Sharing
    Cost Risk
    30s
  • Q6
    What is an inherent characteristic of cloud computing?
    Long-term Contracts
    Access from Anywhere
    Fixed Pricing
    Physical Storefront
    30s
  • Q7
    Which statement describes outsourcing?
    It eliminates all risks.
    It involves contracting a third-party company for specific business processes.
    It only provides software resources.
    It operates solely online.
    30s
  • Q8
    What distinguishes cloud computing from outsourcing regarding infrastructure?
    Outsourcing owns the infrastructure.
    Cloud computing requires physical presence.
    Outsourcing eliminates physical infrastructure.
    Infrastructure is owned by the cloud service provider.
    30s
  • Q9
    What is a typical characteristic of outsourcing's cost structure?
    Pricing can be more fixed or based on long-term contracts.
    Variable costs depending on usage
    Monthly subscriptions only
    Pay-as-you-go model
    30s
  • Q10
    What is a limitation of cloud computing compared to outsourcing?
    Limited customization compared to business-specific workflows.
    Higher operational costs
    Requires physical presence
    No access to internet
    30s
  • Q11
    What is one key similarity between outsourcing and cloud computing?
    Both offer cost efficiency.
    Both guarantee immediate project completion.
    Both require ownership of physical infrastructure.
    Both focus on non-technical functions exclusively.
    30s
  • Q12
    Which of the following best describes the primary focus of cloud computing?
    Outsourcing payroll management.
    Delivering IT services over the internet.
    Managing customer service functions.
    Providing on-site technical support.
    30s
  • Q13
    How do businesses benefit from outsourcing in terms of focus?
    It requires companies to manage more IT infrastructure.
    It allows them to concentrate on core competencies.
    It shifts focus entirely away from productivity.
    It encourages businesses to expand into new areas.
    30s
  • Q14
    What is a central aspect of the cost structure in cloud computing?
    High initial investment in hardware.
    Fixed long-term pricing.
    Pay-as-you-go pricing model.
    No costs unless services are used.
    30s
  • Q15
    In terms of risk, how do outsourcing and cloud computing compare?
    Cloud computing does not involve any risk.
    Both share the risk with the service provider.
    Both place all risk on the client.
    Only outsourcing shares risk.
    30s

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