Outsourcing Customer Relationship Management Systems - Factors to Consider

Factors to Consider in Outsourcing Customer Relationship Management Systems

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Question

An organization is deciding whether to outsource its customer relationship management systems to a provider located in another country.

Which of the following should be the PRIMARY influence in the outsourcing decision?

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Explanations

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A. B. C. D.

C.

When an organization is considering outsourcing its customer relationship management systems to a provider located in another country, there are several factors to consider. However, the PRIMARY influence in the outsourcing decision should be cross-border privacy laws.

Cross-border privacy laws are important because they regulate the transfer of personal information from one country to another. Personal information can include sensitive data such as names, addresses, social security numbers, and financial information. The organization should ensure that the service provider is compliant with the relevant privacy laws in both the country where the provider is located and the country where the personal information is collected and processed.

If the service provider is not compliant with these laws, the organization may be at risk of legal and reputational consequences, including fines, lawsuits, and damage to its brand image. Moreover, the organization must ensure that it has the legal authority to transfer the personal information to the service provider, and that the provider has adequate safeguards in place to protect the information from unauthorized access, disclosure, or misuse.

While time zone differences, the service provider's disaster recovery plan, and current geopolitical conditions may also be important factors in the outsourcing decision, cross-border privacy laws should be the primary influence.