Sourcing Strategies CGEIT Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A company has an SLA with a vendor for its critical ERP system. The SLA includes a credit-based penalty for downtime. Recently, the system experienced a 4-hour outage. The vendor has offered a service credit as per the SLA. The company's business users are upset because the outage occurred during a peak processing period. What is the most important action for the IT governance team to take?

   • AConduct a post-incident review to determine the root cause and identify preventive measures
   • BImmediately renegotiate the SLA to increase the penalty for future outages
   • CAccept the service credit and close the issue
   • DSwitch to a different vendor that has a better uptime record
   Reveal Solution Discussion Select an answer first
2. 22foundation · easy

   Which of the following is a common business driver for an organization to adopt an outsourcing strategy?

   • AEliminating all IT-related risks
   • BGuaranteeing lower costs in all cases
   • CReducing the need for vendor management
   • DAccessing specialized skills not available internally
   Reveal Solution Discussion Select an answer first
4. 23foundation · easy

   What is the primary purpose of a Service Level Agreement (SLA) in a sourcing arrangement?

   • ATo guarantee zero downtime
   • BTo transfer all risk to the vendor
   • CTo replace the need for vendor management
   • DTo define the expected performance and quality of the service
   Reveal Solution Discussion Select an answer first
5. 24application · medium

   A manufacturing company has outsourced its IT help desk to a vendor. The contract includes an SLA specifying that 90% of all tickets must be resolved within 4 business hours. After three months, the vendor reports 92% compliance. However, the company's internal stakeholders are complaining about slow response times for critical production-line issues. What should the IT governance team do first?

   • AImmediately terminate the contract for breach of the SLA
   • BAccept the vendor's report as satisfactory since the SLA target was met
   • CReview the SLA to verify if critical tickets have a separate, stricter resolution-time target
   • DRequire the vendor to provide a root-cause analysis for all resolved tickets
   Reveal Solution Discussion Select an answer first
6. 25expert · hard

   A healthcare organization is selecting a vendor to process and store patient data. Two vendors have passed the initial RFP stage. Vendor A offers a significantly lower price but has its primary data centers in a country with less stringent data protection laws. Vendor B is more expensive but has data centers in the organization's home country and provides detailed compliance certifications. The organization's legal counsel has confirmed that the home country's data residency is a regulatory requirement. What should the organization do?

   • ASelect Vendor A and rely on contractual clauses to ensure data protection
   • BSelect Vendor B because it meets the regulatory requirement, despite the higher cost
   • CReject both vendors and insource the data processing to avoid all vendor risk
   • DAsk Vendor A to sign an indemnity clause covering any regulatory fines
   Reveal Solution Discussion Select an answer first