Which of the following statements is not true?

Outsourcing has actually accelerated the development of new systems in the United States by reducing the cost of building and maintaining them.

The most common and successful offshore outsourcing projects involve production programming and system maintenance programming work, along with call center work. Management and organizational tasks required in systems development usually are not outsourced.

Inflation in Indian and Chinese wages for technology work is leading to a counter movement of some IT jobs back to the United States.

The impact of domestic IT outsourcing has been very disruptive to some regional areas of the United States.

Answer: The impact of domestic IT outsourcing has been very disruptive to some regional areas of the United States.

Explanation: Outsourcing is an agreement in which one company hires another company to be responsible for an existing activity that is done internally and sometimes involves transferring employees and assets from one firm to another.

It involves the contracting of a business process to an external firm (e. g. payroll processing) operational and other functions such as manufacturing, facility management, call center/call centre support.

Outsourcing can offer greater budget flexibility and control by allowing organizations to pay for the services and business functions they need, when they need them. It also reduces the need to hire and train specialized staff, makes available specialized expertise, and can reduce capital, operating expenses and risk.