Nielsen Marketing Research USA (NMR), with operations in 29 countries, is the recognized world leader in the production and dissemination of marketing information. Nielsen was a pioneer in the development of the decision support information business and has been the primary supplier for more than 70 years. NMR’s most recognizable product is the Nielsen television ratings.

Nielsen is one of the largest users of computer capacity in the United States. Its information system has consistently ranked above average in efficiency for its industry. However, NMR commissioned IBM to evaluate outsourcing its information pro¬ cessing. NMR wanted to know if outsourcing would allow it to concentrate on giving its customers value-added services and insights and if it could increase its flexibility, promote rapid growth, and provide it with more real-time information.

Required What are the benefits and risks of outsourcing for NMR? Do you think the benefits of outsourcing outweigh the risks? Explain your answer.