Which of the following is the MOST important function to be performed by IS management when a
service has been outsourced?

A.
Ensuring that invoices are paid to the provider

B.
Participating in systems design with the provider

C.
Renegotiating the provider’s fees

D.
Monitoring the outsourcing provider’s performance

Explanation:

In an outsourcing environment, the company is dependent on the performance of the service
provider. Therefore, it is critical the outsourcing provider’s performance be monitored to ensure
that services are delivered to the company as required. Payment of invoices is a finance function,
which would be completed per contractual requirements. Participating in systems design is a
byproduct of monitoring the outsourcing provider’s performance, while renegotiating fees is usually
a one-time activity.