Question

Which of the following is when an IS organization uses contractor services, or even builds its own data center, in a distant land.

a) Onshoring
b) Nearshoring
c) Offshoring
d) Homeshoring

Answer 1

The correct term for an IS organization using services or building data centers in a distant land is 'offshoring'. It enables companies to access cheaper labor markets compared to outsourcing, which is hiring outside contractors.

Step-by-step explanation:

The practice described in the question relates to when an Information Systems (IS) organization uses contractor services or establishes its own operations in a foreign country, to access more favorable economic conditions such as cheaper labor. The correct term for this practice is offshoring, which is closely related to outsourcing. While outsourcing involves hiring outside contractors, potentially abroad, to perform tasks the company once did internally, offshoring specifically refers to moving the company's own operations to another country to benefit from lower labor costs and other economic advantages.