General Knowledge · Business Management
Lannister is a commercial bank based in Country W. It is considering outsourcing its critical IT department to an overseas IT consultancy company. Its current IT systems are considered excellent, which is highly important as the banking industry in Country W is intensely competitive and innovative. Which of the following statements regarding this strategic proposal is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It is likely to be easy for Lannister to quickly bring the IT function back in-house if major problems arise with the consultancy company.
- 2Outsourcing Lannister's core IT department could lead to a severe loss of its core competitive advantage.✓
- 3Lannister is likely to enjoy significantly increased in-house IT skills, core competencies, and knowledge.
- 4Outsourcing is highly likely to reduce the risk of critical data security breaches within Lannister.
Correct answer
Outsourcing Lannister's core IT department could lead to a severe loss of its core competitive advantage.
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