Sourcing Strategies CGEIT Practice Questions (Page 4)

Questions 16–20

1. 16expert · hard

   A company has outsourced its entire IT operations to a single vendor. The vendor has become a critical dependency, and the company's internal IT team has been reduced to a small group of contract managers. The company is now concerned about vendor lock-in and the high cost of switching. What is the most effective strategy to mitigate this risk?

   • ADevelop a comprehensive exit strategy that includes knowledge transfer and data portability requirements
   • BSign a longer-term contract with the vendor to secure better terms
   • CIncrease the internal contract management team to better oversee the vendor
   • DNegotiate a lower price with the vendor to reduce the financial impact of the dependency
   Reveal Solution Discussion Select an answer first
2. 17foundation · easy

   An organization combines its internal IT staff with an external vendor to jointly deliver a project. Which sourcing strategy does this represent?

   • ACo-sourcing
   • BCloud-based sourcing
   • CInsourcing
   • DOutsourcing
   Reveal Solution Discussion Select an answer first
4. 18foundation · easy

   When exiting a sourcing arrangement, which activity is essential to ensure the organization can continue operations independently?

   • ADeleting all documentation
   • BKnowledge transfer
   • CExtending the contract
   • DIncreasing vendor fees
   Reveal Solution Discussion Select an answer first
5. 19foundation · easy

   An organization regularly reviews the vendor's performance against agreed metrics such as uptime and response time. Which practice does this describe?

   • AContract negotiation
   • BDue diligence
   • CPerformance monitoring
   • DExit planning
   Reveal Solution Discussion Select an answer first
6. 20expert · hard

   A financial services firm is planning to exit a 7-year outsourcing contract with a vendor that manages its customer relationship management (CRM) system. The contract has a 12-month notice period. The firm's internal team lacks experience with the CRM platform, and the vendor owns the custom integrations. The firm's goal is to transition to a new internal team with minimal business disruption. Which action is the most critical to initiate immediately?

   • ANegotiate an extension of the notice period with the vendor
   • BDevelop a detailed transition plan that includes a knowledge-transfer and documentation requirement
   • CBegin a competitive RFP process to select a new outsourcing vendor
   • DImmediately terminate the contract and rely on the vendor's standard exit support
   Reveal Solution Discussion Select an answer first