What is the Manager’s main motivation for doing this?

A doctor’s surgery requires a complex database system to manage all of its patients data, which is highly sensitive. The system also needs to link to other departments of the health service such as physiotherapy and intensive care. The Manager of the surgery is considering outsourcing the management of the database to an IT company .

What is the Manager’s main motivation for doing this?
A . The supplier is an expert in their field
B. This will result in economies of scale
C. This will free-up internal resources
D. This will result in cost-savings

View Answer

Answer: A

Explanation:

The reason for outsourcing in this example is that the IT firm is an expert in their field. The requirement is complex and important and this is the reason why it is not being delivered in-house. The other answers given CAN be reasons for out-sourcing, but don’t relate to this example. For a full list of reasons a company could use outsourcing see p. 4-5