JEZ Limited decided to outsource some of its Management Information System services. Explain THREE possible reasons for this approach.

Cost Efficiency: Outsourcing Management Information System services can be a cost-effective approach for JEZ Limited. This is because the company can save on the costs associated with hiring and training new employees, purchasing necessary equipment, and maintaining systems. Instead, they can pay a fixed fee to a service provider who specializes in these services and can provide them at a lower cost due to economies of scale.

Access to Expertise: By outsourcing, JEZ Limited can gain access to expert knowledge and skills that they may not possess in-house. The service provider is likely to be a specialist in the field of Management Information Systems and will be up-to-date with the latest technologies and methodologies. This can enhance the quality of the services and provide JEZ Limited with a competitive advantage.

Focus on Core Business: Outsourcing allows JEZ Limited to focus on their core business activities. Management Information Systems may not be their primary area of expertise, and by outsourcing these services, they can dedicate more time and resources to areas where they can add the most value. This can improve efficiency and productivity within the company.