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Sourcing Strategy & Governance Flashcards

7 cards from real ITIL practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Which sourcing strategy involves delivering IT services exclusively using internal organizational resources and capabilities?

    Answer: Insourcing

    Insourcing means the organization uses its own internal staff and resources to deliver IT services, retaining full control and accountability within the organization.

  2. What is co-sourcing in the context of ITIL Service Strategy?

    Answer: A combination of internal staff and external supplier resources for service delivery

    Co-sourcing blends internal resources with external supplier capabilities, enabling organizations to leverage both in-house knowledge and external expertise.

  3. Which sourcing model involves transferring responsibility for an entire business function — including outcomes — to an external provider?

    Answer: Business Process Outsourcing (BPO)

    BPO transfers full ownership and accountability for a complete business function to an external provider, not just discrete tasks or technology components.

  4. In ITIL Service Strategy, what is the primary driver for an organization choosing an outsourcing strategy?

    Answer: To access specialized skills and reduce costs while focusing on core competencies

    Outsourcing enables organizations to leverage specialist provider expertise, reduce operational costs, and refocus internal resources on core business differentiators.

  5. Which sourcing model describes a formal arrangement where two organizations share investment, risks, and responsibility for a joint business venture?

    Answer: Partnership

    A partnership is a formal arrangement with shared investment and risk between two organizations, typically involving joint governance and mutual accountability for outcomes.

  6. What does multi-sourcing mean in ITIL Service Strategy?

    Answer: Obtaining different IT services from multiple independent external providers

    Multi-sourcing means the organization deliberately distributes service procurement across several independent external providers rather than concentrating on a single supplier.

  7. How does Knowledge Process Outsourcing (KPO) differ from Business Process Outsourcing (BPO)?

    Answer: KPO focuses on outsourcing knowledge-intensive, judgment-based processes requiring domain expertise

    KPO outsources processes that require significant domain knowledge, analytical judgment, and expertise — going beyond the routine execution that characterizes BPO.