Sourcing Strategies CGEIT Practice Questions (Page 3)

Questions 11–15

1. 11application · medium

   A large retail chain is considering outsourcing its IT infrastructure management. The primary driver is to reduce operational costs. The internal IT department is currently understaffed and struggles to keep up with routine maintenance. However, the company is concerned about losing control over its IT environment. Which sourcing strategy would best address the cost and staffing concerns while mitigating the loss-of-control risk?

   • AUsing a public cloud provider for all infrastructure without any internal IT involvement
   • BInsourcing by hiring more internal staff to handle all infrastructure management
   • CCo-sourcing, where the vendor handles routine infrastructure management but the internal team retains strategic control
   • DTotal outsourcing of all IT functions, including strategy and planning
   Reveal Solution Discussion Select an answer first
2. 12foundation · easy

   During vendor selection, an organization reviews the vendor's financial stability, references, and technical capabilities. Which process does this describe?

   • AExit planning
   • BDue diligence
   • CContract negotiation
   • DService level agreement
   Reveal Solution Discussion Select an answer first
4. 13application · medium

   A government agency is required to maintain a high level of control over its IT systems due to national security concerns. The agency has a large, skilled internal IT workforce. However, it occasionally needs specialized expertise for short-term projects, such as a security penetration test. Which sourcing strategy is most appropriate for this agency?

   • AInsourcing for core operations and co-sourcing for the specialized short-term projects
   • BFull outsourcing of all IT operations to a private sector partner
   • CUsing a public cloud for all systems to benefit from advanced security features
   • DCo-sourcing all IT functions, including core operations, to a single vendor
   Reveal Solution Discussion Select an answer first
5. 14expert · hard

   A company has outsourced its payroll processing to a vendor. The contract includes an SLA with a penalty clause for late or incorrect payments. Recently, the vendor has missed the deadline twice in one month. The company's governance team is considering invoking the penalty clause. What is the most important consideration before taking this action?

   • AWhether the company has a backup vendor ready to take over the payroll processing
   • BWhether the vendor's overall performance over the past year has been satisfactory
   • CWhether the missed deadlines were caused by the company's own failure to provide accurate data on time
   • DWhether the vendor has a documented remediation plan to prevent future occurrences
   Reveal Solution Discussion Select an answer first
6. 15foundation · easy

   Which of the following is a key component of sourcing governance?

   • AGuaranteeing vendor profitability
   • BRemoving all regulatory requirements
   • CEliminating all vendor contracts
   • DEstablishing clear roles and responsibilities for oversight
   Reveal Solution Discussion Select an answer first