An organization facing rapid growth decides to employ a third party service provider to manage its customer relationship management function. Which of the following is true regarding the supporting application software used by that provider compared to an in-house developed system?
1. Updating documentation is always a priority.
2. System availability is usually more reliable.
3. Data security risks are lower.
4. Overall system costs are lower.
Employing a third party service provider to manage customer relationship management usually means system availability tends to be more reliable because such providers typically offer robust infrastructure and have service level agreements (SLAs) in place to ensure uptime. Additionally, overall system costs are often lower because the third party provider can spread costs over multiple clients, achieving economies of scale. However, data security risks can be higher due to increased exposure and less direct control over the data, and updating documentation may not always be a priority for the third party provider.
Isn't data security riskier if handled by 3rd party?
It is, that's why it's not an advantage. However, I agree with you the way questions are written down is pretty stupid
it's a free site, don't complain.
The answer is correct. risk sharing is risk reduction strategy. the risk level for the organisation will be lower when shared with vendor. Vendor will manage some element of the risk