Explain the outsourcing risk of failure to perform


Once a client firm has outsourced specific IT assets, its performance becomes linked to the vendor's performance. The negative implications of such dependency are illustrated in the financial problems that have plagued the huge outsourcing vendor Electronic Data Systems Corp. (EDS). In a cost-cutting effort, EDS terminated seven thousand employees, which impacted its ability to serve other clients. Following an eleven-year low in share prices, EDS stockholders filed a class-action lawsuit against the company. Clearly, vendors experiencing such serious financial and legal problems threaten the viability of their clients also.

Business

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Merchandise that customers return to the seller after a sale is referred to as________.

Fill in the blank(s) with the appropriate word(s).

Business

Equivalent units of output are the complete units that could have been produced given the total amount of manufacturing effort expended for the period under consideration

Indicate whether the statement is true or false

Business

Manuel, a credit supervisor, must write a letter informing a new client that her credit application has been approved. What writing sequence should he use?

a. Persuasive since he needs to confirm her choice of his company's products b. Inductive because he needs to give her an explanation first c. Deductive because he needs to give her the good news at the beginning of his message d. None of the above

Business

Regardless of the specific type of long-term debt, which of the following is normally an expectation with regards to debt transactions?

A. Payment of interest B. Repayment of the debt C. Payment of dividends D. Payment of interest and repayment of the debt

Business