ACOM Chapter 7

Chapter 7 – Development Strategies
MULTIPLE CHOICE
1. Although the traditional model of software acquisition still accounts for more software acquisition, a
new model, called ____, is changing the picture dramatically.
a. Hardware as a Help c. Processing as a Product
b. Software as a Service d. Storage as a Solution
ANS: B PTS: 1 REF: 260
2. ____ is a model of software deployment where an application is hosted as a service provided to

customers over the Internet.
3. ____ reduces the customer's need for software maintenance, operation, and support.
4. ____ promotes a broader vision of Software + Services, which refers to the company's strategy for
cloud computing -- integrating software applications, platforms, and infrastructure.
a. Oracle c. IBM
b. Hewlett-Packard d. Microsoft
ANS: D PTS: 1 REF: 260
5. Gartner, Inc. predicts that by 2015 SaaS revenue will grow to ____.
a. $7.1 billion c. $14.5 billion
b. $8.6 billion d. $22.1 billion
6. Microsoft’s ____ is one of the major Web-based development environments.

a. WebSphere c. NetSphere
b. .NET d. .WEB
7. Building an application in a ____ environment can offer greater benefits, and sometimes greater risks,
compared to a traditional environment.
a. GUI c. cloud
b. Web-based d. multinational
8. Web-based software usually requires additional layers, called ____, to communicate with existing
software and legacy systems.
a. freeware c. middleware
b. shareware d. public domain software
ANS: C PTS: 1 REF: 262
9. When companies acquire Web-based software as a(n) ____, they can limit in-house involvement to a
minimum.
a. product c. service
b. value-add d. outsource
10. Some industry leaders predict that ____ computing will offer an overall online software and data
environment supported by supercomputer technology.
a. interpolated c. outsourced
b. mainframe d. cloud
11. ____ is the transfer of information systems development, operation, or maintenance to an outside firm
that provides these services, for a fee, on a temporary or long-term basis.
a. Outsourcing c. Subscription
b. Commission d. External provision
ANS: A PTS: 1 REF: 263
12. A firm that offers outsourcing solutions is called a ____ provider.

a. subscription c. service
b. software d. resource
13. Oracle Corporation offers a service called ____, which provides e-business applications on a fixed fee
basis.
a. WebSphere c. Business Process Outsourcing
b. .NET d. Oracle On Demand
14. Outsourcing a basic business process is often called ____.

a. RFO c. BPO
b. TFO d. TCO
15. The ____ environment enhances interactive experiences, including wikis and blogs, and social
networking applications.
a. outsourcing c. Web 2.0
b. SaaS d. Web 3.0
16. Some ____ providers concentrate on specific software applications; others offer resources like order
processing and customer billing.
a. subscription c. service
b. software d. resource
17. A(n) ____ is a firm that delivers a software application, or access to an application, by charging a
usage or subscription fee.
a. ASP c. ISP
b. OSP d. USP
18. Some firms offer ____, which provide powerful Web-based support for transactions such as order
processing, billing, and customer relationship management.
a. ASP c. fixed usage
b. IBS d. fixed-fee transfer
19. When determining outsourcing fees, a ____ uses a set fee based on a specified level of service and user
support.
a. fixed fee model c. subscription model
b. usage model d. transaction model
20. When determining outsourcing fees, a ____ has a variable fee based on the number of users or
workstations that have access to the application.
a. fixed fee model c. subscription model
b. usage model d. transaction model
ANS: C PTS: 1 REF: 264-265
21. A(n) ____ model is an outsourcing fee model that charges a variable fee based on the volume of
transactions or operations performed by the application.
a. method c. transaction
b. administrative d. interpolated
22. The choice between developing versus purchasing software often is called a ____ decision.
a. build or make c. transactional
b. subscription d. build or buy
23. The software that a company’s IT department makes, builds, and develops is called ____ software.
a. in-house c. external
b. internal d. indexed
24. A software ____ is software that is obtained from a vendor or application service provider.
a. package c. subscription
b. cluster d. aggregate
25. Companies that develop software for sale are called software ____.
a. VARs c. vendors
b. resellers d. packages
26. A firm that enhances a commercial package by adding custom features and configuring it for a
particular industry is called a(n) ____.
a. BRE c. OSP
b. IRH d. VAR
27. Typically, companies choose in-house software development for all of the following reasons EXCEPT
to ____.
a. minimize changes in business procedures and policies
b. meet constraints of existing systems and existing technology
c. develop internal resources and capabilities
d. obtain input from other companies who already have implemented the software
28. Advantages of purchasing a software package over developing software in-house include all of the
following EXCEPT ____.
a. satisfaction of unique business requirements
b. lower costs and less time to implement
c. proven reliability and performance benchmarks
d. less technical development staff
29. Buyers can customize a software package by ____.

a. negotiating directly with the software vendor to make enhancements to meet the buyer’s
needs by paying for the changes
b. purchasing a basic package that vendors will customize to suit the buyer’s needs
c. purchasing the software and making their own modifications, if this is permissible under
the terms of the software license
d. all of the above
30. A user ____ utilizes standard business software, such as Microsoft Word or Microsoft Excel, which
has been configured in a specific manner to enhance user productivity.
a. application c. interface
b. configuration d. interpolation
31. In addition to configuring software, the IT staff can create a user ____, which includes screens,
commands, controls, and features that enable users to interact more effectively with the application.
a. montage c. interface
b. index d. package
32. Some data files should be hidden totally from view, while others should have ____ so users can view,
but not change, the data.
a. no-access properties c. full-access properties
b. read-only properties d. write-only properties
33. The ____ team must include users, who will participate in the selection process and feel a sense of
ownership in the new system.
a. prototyping c. JAD
b. evaluation and selection d. assessment
34. Nearly ____ percent of total costs occur after the purchase of hardware and software.
a. 15 c. 80
b. 45 d. 95
35. A ____ is a document that describes a company, lists the IT services or products needed, and specifies
the features required.
a. request for quotation (RFQ) c. request for proposal (RFP)
b. net present value (NPV) d. return on investment (ROI)
36. When companies use a ____, they already know the specific products or service they want and need to
obtain price quotations or bids from vendors.
a. request for quotation (RFQ) c. request for proposal (RFP)
b. net present value (NPV) d. return on investment (ROI)
37. Many IT ____ offer specialized services that help companies select software packages.
a. proxies c. consultants
b. forums d. managers
38. ____ is an example of a nonprofit organization that publishes standards and reports for its members
and the general public.
a. IEEE c. The TPC
b. RFP d. Oracle
39. A ____ measures the time a package takes to process a certain number of transactions.
a. newsgroup c. benchmark
b. parameter d. default
40. When planning a slide presentation to management at the end of the systems analysis phase, systems
analysts should keep all of the following suggestions in mind EXCEPT ____.
a. summarize the primary viable alternatives
b. ignore time for discussion and questions and answers
c. explain why the evaluation and selection team chose the recommended alternative
d. obtain a final decision or agree on a timetable for the next step in the process
MULTIPLE RESPONSE
Modified Multiple Choice
1. Which of the following is true of a traditional systems development environment?

a. systems design is influenced by compatibility issues
b. systems are designed to run on local and wide-area company networks
c. systems often utilize Internet links and resources
d. scalability is not affected by network limitations and constraints
ANS: A, B, C PTS: 1 REF: 262
2. Which of the following is a path that development can follow?

a. in-house development
b. construct a legacy system
c. purchase of a software package with possible modification
d. use of outside consultants
ANS: A, C, D PTS: 1 REF: 262
3. Which of the following is true of Web-based development?

a. Web-based systems are easily scalable.
b. Large firms tend to deploy Web-based systems as enterprise-wide software solutions for
applications such as customer relationship management and order processing.
c. Internet-based development treats the Web as a communication channel, rather than as the
platform.
d. Systems are developed and delivered in an Internet-based framework.
ANS: A, B, D PTS: 1 REF: 262
4. Which of the following is true of Web-based development?

a. Web-based software treats the software as a service that is more dependent on desktop
computing powers and resources.
b. Web-based software usually requires middleware to communicate with existing software
and legacy systems.
c. Web-based systems can run on multiple hardware environments.
d. When companies acquire Web-based software as a service rather than a product they
purchase, they can limit in-house involvement to a minimum.
ANS: B, C, D PTS: 1 REF: 262
5. Outsourcing can refer to ____.

a. relatively minor programming tasks
b. the rental of software from a service provider
c. the handling of a company’s entire IT function
d. BPO
ANS: A, B, C, D PTS: 1 REF: 263
MODIFIED TRUE/FALSE
1. An ASP provides more than a license to use the software; it rents an operational package to the
customer. _________________________
ANS: T PTS: 1 REF: 264
2. A software package that can be used by many different types of organizations is called a vertical
application. _________________________
ANS: F, horizontal
PTS: 1 REF: 267
3. A software package developed to handle information requirements for a specific type of business is
called a horizontal application. _________________________
ANS: F, vertical
PTS: 1 REF: 267
4. Net present value is a percentage rate that compares the total net benefits (the return) received from a
project to the total costs (the investment) of the project. _________________________
ANS: F
Return on investment
ROI
PTS: 1 REF: 274
5. The ROI of a project is the total value of the benefits minus the total value of the costs, with both costs
and benefits adjusted to reflect the point at which they occur. _________________________
ANS: F
net present value
NPV
PTS: 1 REF: 274
TRUE/FALSE
1. Typically, customers purchase licenses that give them the right to use the software under the terms of
the license agreement.
2. Building an application in a Web-based environment might involve greater risks and benefits,
compared to a traditional environment.
3. In a traditional systems development environment, security issues usually are less complex than with
Web-based systems, because the system operates on a private company network, rather than the
Internet.

4. Mission-critical IT systems should be outsourced only if the result is a cost-attractive, reliable,
business solution that fits the company’s long-term business strategy.
5. A subscription model charges a variable fee based on the volume of transactions or operations
performed by the application.
ANS: F PTS: 1 REF: 265
6. A company considering outsourcing must realize that the solution can be only as good as the
outsourcing firm that provides the service.
7. Mergers and acquisitions typically have no impact on clients and customers of large, financially
healthy firms.
8. The main reason for offshore outsourcing is the same as domestic outsourcing: lower bottom-line
costs.
9. By designing a system in-house, companies can develop and train an IT staff that understands the
organization’s business functions and information support needs.
10. Compared to software developed in-house, a software package almost always is more expensive,
particularly in terms of initial investment.
11. Many firms feel that in-house IT resources and capabilities provide a competitive advantage because
an in-house team can respond quickly when business problems or opportunities arise.
12. Companies that use commercial software packages always must increase the number of programmers
and systems analysts on the IT staff.
13. Software vendors regularly upgrade software packages by adding improvements and enhancements to
create a new version or release.
14. Empowerment makes an IT department less productive because it must spend more time responding to
the daily concerns of users and less time on high-impact systems development projects that support
strategic business goals.
15. The decision to develop software in-house will require less participation from the systems analyst than
outsourcing or choosing a commercial package.
16. The primary objective of an evaluation and selection team is to eliminate system alternatives that will
not work, rank the system alternatives that will work, and present the viable alternatives to
management for a final decision.
17. A request for quotation (RFQ) is less specific than an RFP (request for proposal).
18. A standard method exists for assigning the weight factors in the evaluation of responses to an RFP.
19. Some vendors limit their reference lists to satisfied clients, so you can expect mostly positive feedback
from those firms.
20. Benchmark tests must precisely match the day-to-day situation at your company.
21. For large-scale systems, license agreement terms can be negotiated.
22. For desktop applications, software license terms and conditions usually can be modified.
23. If a purchased package will be used without modification, you can begin planning the systems
implementation phase upon its purchase.
24. Whereas the logical design of an information system is concerned with how the system will meet
requirements, physical design is concerned with what the system must accomplish.
25. In general, systems development is faster, more flexible, and more user-oriented than in the past.
COMPLETION
1. An ultimate form of SaaS would be ____________________ computing, which would deliver services
and data to users who would need only an Internet connection and a browser.
ANS: cloud
PTS: 1 REF: 263
2. Traditionally, firms ____________________ IT tasks as a way of controlling costs and dealing with
rapid technological change.
ANS:
outsourced
outsource
PTS: 1 REF: 263
3. If a company uses a(n) ____________________ to supply a data management package, the company
does not have to design, develop, implement, or maintain the package.
ANS:
application service provider
ASP
application service provider (ASP)
ASP (application service provider)
PTS: 1 REF: 264
4. In ____________________ hosting, system operations are managed by an outside form, or host.
ANS: managed
PTS: 1 REF: 264
5. When a company considers outsourcing, it should estimate ____________________ characteristics to

determine which fee structure would be most desirable, and then attempt to negotiate a service
provider contract based on that model.
ANS: usage
PTS: 1 REF: 265
6. Offshore outsourcing is also called ____________________ outsourcing.
ANS: global
PTS: 1 REF: 265
7. Several years ago, Gartner predicted that ____________________ would evolve from labor-intensive
maintenance and support to higher-level systems development and software design.
ANS: outsourcing
PTS: 1 REF: 265

8. An accounting package is a good example of a(n) ____________________ application because it can
be utilized by many different businesses, for example.
ANS: horizontal
PTS: 1 REF: 267
9. Both of the businesses shown in the accompanying figure need ____________________ applications
to handle their unique business requirements.
ANS: vertical
PTS: 1 REF: 267
10. Some advantages of purchasing a standard software package disappear if the product must be
____________________.
ANS: customized
PTS: 1 REF: 270
11. In most large and medium-sized companies, a(n) ____________________ within the IT department is
responsible for providing user support.
ANS:
service desk
information center
IC
PTS: 1 REF: 271
12. Some user applications have powerful ____________________ that allow users to design their own
data entry forms and reports.
ANS:
report generators
screen generators
PTS: 1 REF: 271
13. The evaluation and selection of alternatives is not a simple process; the objective is to obtain the
product with the lowest ____________________, but actual cost and performance can be difficult to
forecast.
ANS:
TCO
total cost of ownership
TCO (total cost of ownership)
total cost of ownership (TCO)
PTS: 1 REF: 272
14. When selecting hardware and software, systems analysts often work as a(n) ____________________,
which ensures that critical factors are not overlooked and that a sound decision is made.
ANS: evaluation and selection team
PTS: 1 REF: 273
15. ____________________ determines how long it takes an information system to pay for itself through
reduced costs and increased benefits.
ANS: Payback analysis
PTS: 1 REF: 274
16. A(n) ____________________ is a technique that uses a common yardstick to measure and compare
vendor ratings.
ANS: evaluation model
PTS: 1 REF: 276

17. Based on a(n) ____________________, vendors can decide if they have a product that will meet your
needs.
ANS:
RFP
request for proposal
request for proposal (RFP)
RFP (request for proposal)
PTS: 1 REF: 276
18. No matter what topics interest you, there are sure to be one or more ____________________, as
shown in the accompanying figure, where people gather to meet, offer support, and exchange ideas.
ANS:
forums
newsgroups
PTS: 1 REF: 278
19. When users purchase software, what they are buying is a(n) ____________________ that gives them
the right to use the software under certain terms and conditions.
ANS: software license
PTS: 1 REF: 280

20. The ____________________ contains the requirements for a new system, describes the alternatives
that were considered, and makes a specific recommendation to management.
ANS:
system requirements document
software requirements specification
PTS: 1 REF: 281
MATCHING
Identify the letter of the choice that best matches the phrase or definition.
a. cloud computing f. physical design
b. IBS g. logical design
c. managed hosting h. Web 2.0
d. WebSphere i. benchmarking
e. BPO j. systems requirement document
1. Predicted by industry leaders to offer an overall online software and data environment supported by
supercomputer technology.
2. Describes a second generation of the Web that will enable people to collaborate, interact, and share
information much more effectively.
3. An example of a Web-based development environment.
4. Attractive to customers because it offers online data center support, mainframe computing power for
mission-critical functions, and universal access via the Internet.
5. Another name for IBS.
6. A good way to measure relative performance of two or more competing products in a standard
environment.
7. Like a contract that identifies what the system developers must deliver to users.
8. The outsourcing of a basic business function.
9. With an information system, a plan for the actual implementation of the system.
10. With an information system, design that does not address the actual methods of implementation.
1. ANS: A PTS: 1 REF: 263

2. ANS: H PTS: 1 REF: 263
3. ANS: D PTS: 1 REF: 261
4. ANS: B PTS: 1 REF: 264
5. ANS: C PTS: 1 REF: 264
6. ANS: I PTS: 1 REF: 279
7. ANS: J PTS: 1 REF: 281
8. ANS: E PTS: 1 REF: 263
9. ANS: F PTS: 1 REF: 283
10. ANS: G PTS: 1 REF: 283
ESSAY
1. Discuss at length the concerns and issues related to outsourcing.
ANS:
When a company decides to outsource IT functions, it takes an important step that can affect the firm’s
resources, operations, and profitability. Mission-critical IT systems should be outsourced only if the
result is a cost-attractive, reliable, business solution that fits the company’s long-term business strategy
and involves an acceptable level of risk. Moving IT work overseas raises even more issues, including
potential concerns about control, culture, communication, and security.
In addition to long-term strategic consequences, outsourcing also can raise some concerns. For
example, a company must turn over sensitive data to an external service provider and trust the provider
to maintain security, confidentiality, and quality. Also, before outsourcing, a company must carefully
review issues relating to insurance, potential liability, licensing and information ownership, warranties,
and disaster recovery.
Most important, a company considering outsourcing must realize that the solution can be only as good
as the outsourcing firm that provides the service. A dynamic economy can give rise to business failures
and uncertainty about the future. In this climate, it is especially important to review the history and
financial condition of an outsourcing firm before making a commitment.
Mergers and acquisitions also can affect outsourcing clients. For example, after their merger, Compaq
and Hewlett-Packard restructured and streamlined the products and services offered by the new
company. Even with large, financially healthy firms such as these, a merger or acquisition can have
some impact on clients and customers. If stability is important, an outsourcing client should consider
these issues.
Outsourcing can be especially attractive to a company whose volume fluctuates widely, such as a
defense contractor. In other situations, a company might decide to outsource application development
tasks to an IT consulting firm if the company lacks the time or expertise to handle the work on its own.
Outsourcing relieves a company of the responsibility of adding IT staff in busy times and downsizing
when the workload lightens. A major disadvantage of outsourcing is that it raises employee concerns
about job security. Talented IT people usually prefer positions where the firm is committed to in-house
IT development — if they do not feel secure, they might decide to work directly for the service
provider.
PTS: 1 REF: 265 TOP: Critical Thinking
2. What are the advantages of purchasing a software package?
ANS:
If a company decides not to outsource, a commercially available software package might be an
attractive alternative to developing its own software. Advantages of purchasing a software package
over developing software in-house include lower costs, less time to implement a system, proven
reliability and performance benchmarks, less technical development staff, future upgrades that are
provided by the vendor, and the ability to obtain input from other companies who already have
implemented the software.
LOWER COSTS Because many companies use software packages, software vendors spread the
development costs over many customers. Compared with software developed in-house, a software
package almost always is less expensive, particularly in terms of initial investment. However, even
though the initial cost is less, purchased software can involve expenses caused by business disruption,
changing business processes, and retraining employees.
REQUIRES LESS TIME TO IMPLEMENT When you purchase a package, it already has been
designed, programmed, tested, and documented. The in-house time normally spent on those tasks,
therefore, is eliminated. Of course, you still must install the software and integrate it into your systems
environment, which can take a significant amount of time. Also, even though implementation is
quicker, TOC can be higher due to added training expenses and software modifications.
PROVEN RELIABILITY AND PERFORMANCE BENCHMARKS If the package has been on the
market for any length of time, any major problems probably have been detected already and corrected
by the vendor. If the product is popular, it almost certainly has been rated and evaluated by
independent reviewers.
REQUIRES LESS TECHNICAL DEVELOPMENT STAFF Companies that use commercial software
packages often are able to reduce the number of programmers and systems analysts on the IT staff.
Using commercial software also means that the IT staff can concentrate on systems whose
requirements cannot be satisfied by software packages.
FUTURE UPGRADES PROVIDED BY THE VENDOR Software vendors regularly upgrade software
packages by adding improvements and enhancements to create a new version or release. A new release
of a software package, for example, can include drivers to support a new laser printer or a new type of
data storage technology. In many cases, the vendor receives input and suggestions from current users
when planning future upgrades.
INPUT FROM OTHER COMPANIES Using a commercial software package means that you can
contact users in other companies to obtain their input and impressions. You might be able to try the
package or make a site visit to observe the system in operation before making a final decision.
PTS: 1 REF: 269-270 TOP: Critical Thinking
3. Contrast logical and physical design.
ANS:
A logical design defines what must take place, not how it will be accomplished. Logical designs do not
address the actual methods of implementation. In contrast, a physical design is like a set of blueprints
for the actual construction of a building. Typically, a physical design describes the actual processes of
entering, verifying, and storing data; the physical layout of data files and sorting procedures, the
format of reports, and so on. Because logical and physical designs are related so closely, good systems
design is impossible without careful, accurate systems analysis. For example, you might return to fact-
finding if you discover that you overlooked an important issue, if users have significant new needs, or
if legal or governmental requirements change.
PTS: 1 REF: 283-284 TOP: Critical Thinking
CASE
Critical Thinking Questions

Case 7-1
Now that they have joined the firm, Priscilla is providing the junior analysts on the team with some
real-world illustrations to explain some of the recommendations that they must be prepared to make to
clients, based on what they have studied in their coursework, in order to solidify their understanding.
1. Which of the following is NOT a reason Priscilla would offer as a reason for in-house software
development?
a. The client has unique business requirements that must be satisfied by this software
application.
b. The client wants to be able to use fewer technical development staff members.
c. The client has a number of very distinctive security requirements.
d. The client has some existing technology in place whose requirements must be met by the
new software.
ANS:
B
2. Which of the following is NOT a reason Priscilla will share with the new analysts, with regard to a
client that wants to purchase a software package?
a. The client wants to be able to develop internal resources and capabilities among the
technical staff.
b. The client is looking for the lowest possible costs.
c. The client is looking to spend the least possible time in implementation.
d. The client wants to be able to rely on a vendor to provide future upgrades.
ANS:
A
Critical Thinking Questions

Case 7-2
You have started the process of selecting a new system for the firm and you are weighing all of the
various issues that need to be considered and the resources you have at your disposal as you make this
important decision.
3. As you prepare to winnow the field in your selection of a new system, you want a quick refresher on
the difference between RFPs and RFQs. If you need an RFP, Simone will write it, and if you need an
RFQ, Marny is responsible for writing that. Which of the following is true?
a. An RFP that Simone writes is more specific than an RFQ Marny will write.
b. When Simone is tasked with the job, you already know the specific product or service you
want and you need to obtain price quotations or bids.
c. When Marny is tasked with the job, her output can involve outright purchase or a variety
of leasing options.
d. RFPs and RFQs have very different objectives.
ANS:
C
4. You have two candidates for the new system. Which one of the following is NOT a strategy you can
pursue for making the final selection from among the two candidates?
a. For vertical applications, use a demo copy to enter a few sample transactions in both.
b. Contact existing users to obtain feedback for both of the contenders.
c. Perform a benchmark test to measure the time each of the two applications needs to
perform a number of transactions.
d. Consult Web sites maintained by consultants and software publishers with product
references and links to vendors.
ANS:
A

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What are some models for determining outsourcing fees?

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What is the difference between logical and physical design?

What is the difference between logical and physical design?

Chapter 7 – Development Strategies

2. ____ is a model of software deployment where an application is hosted as a service provided to

6. Microsoft’s ____ is one of the major Web-based development environments.

12. A firm that offers outsourcing solutions is called a ____ provider.

14. Outsourcing a basic business process is often called ____.

29. Buyers can customize a software package by ____.

Modified Multiple Choice

1. Which of the following is true of a traditional systems development environment?

2. Which of the following is a path that development can follow?

3. Which of the following is true of Web-based development?

4. Which of the following is true of Web-based development?

5. Outsourcing can refer to ____.

PTS: 1 REF: 267

PTS: 1 REF: 267

PTS: 1 REF: 274

PTS: 1 REF: 274

ANS: T PTS: 1 REF: 260

ANS: T PTS: 1 REF: 262

ANS: T PTS: 1 REF: 262

ANS: T PTS: 1 REF: 265

ANS: F PTS: 1 REF: 265

ANS: T PTS: 1 REF: 265

ANS: F PTS: 1 REF: 265

ANS: T PTS: 1 REF: 266

ANS: T PTS: 1 REF: 269

ANS: F PTS: 1 REF: 269

ANS: T PTS: 1 REF: 269

ANS: F PTS: 1 REF: 269

ANS: T PTS: 1 REF: 269

ANS: F PTS: 1 REF: 271

ANS: T PTS: 1 REF: 273

ANS: F PTS: 1 REF: 277

ANS: F PTS: 1 REF: 277

ANS: T PTS: 1 REF: 279

ANS: F PTS: 1 REF: 279

21. For large-scale systems, license agreement terms can be negotiated.

ANS: T PTS: 1 REF: 280

ANS: F PTS: 1 REF: 280

ANS: T PTS: 1 REF: 282

ANS: F PTS: 1 REF: 283

ANS: T PTS: 1 REF: 283

PTS: 1 REF: 263

PTS: 1 REF: 263

PTS: 1 REF: 264

4. In ____________________ hosting, system operations are managed by an outside form, or host.

PTS: 1 REF: 264

5. When a company considers outsourcing, it should estimate ____________________ characteristics to

PTS: 1 REF: 265

6. Offshore outsourcing is also called ____________________ outsourcing.

PTS: 1 REF: 265

PTS: 1 REF: 265

PTS: 1 REF: 267

PTS: 1 REF: 267

PTS: 1 REF: 271

PTS: 1 REF: 271