Sourcing Strategies CGEIT Practice Questions (Page 2)

Questions 6–10

1. 6foundation · easy

   Which criterion is most important when evaluating a sourcing strategy to ensure it supports the organization's long-term goals?

   • AVendor's marketing budget
   • BLocation of the vendor's headquarters
   • CStrategic alignment
   • DNumber of employees in the vendor
   Reveal Solution Discussion Select an answer first
2. 7application · medium

   A company is experiencing rapid growth and needs to scale its IT infrastructure quickly to support new business demands. The company's current on-premises data center is at capacity, and building a new one would take 18 months. The company's leadership is risk-averse and prefers to avoid long-term capital commitments. Which sourcing strategy best meets the need for rapid scalability and limited capital commitment?

   • AOutsourcing to a managed service provider with a 5-year contract
   • BUsing a public cloud provider with a pay-as-you-go model
   • CInsourcing by building a new data center
   • DCo-sourcing with a vendor that provides additional on-premises hardware
   Reveal Solution Discussion Select an answer first
4. 8expert · hard

   A company is considering outsourcing its customer service call center. The internal call center is expensive to run and has high employee turnover. A potential vendor offers a 30% cost reduction. However, the company's customer satisfaction scores are currently high, and the company is concerned that outsourcing may negatively impact customer experience. What is the most important factor for the company to weigh in this decision?

   • AThe cost savings of 30% compared to the potential risk of losing customers due to poor service
   • BThe internal team's high turnover rate, which suggests the current model is unsustainable
   • CThe complexity of the vendor's proposed pricing model
   • DThe vendor's ability to scale its call center operations during peak seasons
   Reveal Solution Discussion Select an answer first
5. 9expert · hard

   A company has outsourced its data center operations. The SLA defines an availability target of 99.9% uptime. The vendor has consistently met this target for the past two years. However, the company's internal users have experienced several significant outages that lasted only a few minutes each. The company's governance team is concerned that the SLA is not capturing the true user impact. What is the most effective way to address this concern?

   • ASwitch to a different vendor that offers a higher availability SLA
   • BAccept the current SLA since the vendor is meeting the agreed-upon availability target
   • CAdd a new SLA metric that measures the total number of user-impacting minutes per month
   • DRenegotiate the SLA to include a metric for the number of individual outage incidents
   Reveal Solution Discussion Select an answer first
6. 10application · medium

   A mid-sized company is deciding whether to outsource its application development. The internal team is skilled but small and is currently focused on maintaining legacy systems. The company wants to develop a new mobile app to enter a new market quickly. The project is expected to last 9 months. What is the most important factor for the company to consider when making this sourcing decision?

   • AThe company's current IT budget for the current fiscal year
   • BThe strategic importance of the mobile app to the company's long-term competitive advantage
   • CThe cost of the outsourcing contract compared to the cost of hiring temporary internal developers
   • DThe vendor's ability to provide ongoing maintenance after the 9-month project is complete
   Reveal Solution Discussion Select an answer first