ITIL Sourcing Strategy & Governance 2

Question 1

In ITIL, what is the primary role of an Underpinning Contract (UC) in sourcing governance?

Accepted Answer

It is a legally binding agreement with an external supplier that supports the delivery of an SLA

Answer

It defines service levels between IT and the internal business customer

Answer

It documents internal team responsibilities within the IT department

Answer

It establishes pricing models for services offered in the service catalog

Question 2

Which governance principle is most critical when transitioning services to an outsourced provider?

Accepted Answer

Maintaining a retained organization with contract management and governance expertise

Answer

Eliminating all remaining internal IT capabilities to reduce cost

Answer

Ensuring the provider adopts the customer's existing toolset without modification

Answer

Transferring all governance responsibilities entirely to the external provider

Question 3

What is the primary purpose of vendor performance management in sourcing governance?

Accepted Answer

To ensure suppliers meet contractual obligations and drive continuous improvement

Answer

To reduce the total number of suppliers the organization uses

Answer

To eliminate the need for formal SLAs with external providers

Answer

To build a business case for converting outsourced services back to insourcing

Question 4

In a SIAM (Service Integration and Management) model, what is the integrator's primary responsibility?

Accepted Answer

To coordinate and manage multiple service providers to deliver coherent end-to-end services

Answer

To replace all existing service providers with a single preferred vendor

Answer

To own and operate the infrastructure used by all service providers

Answer

To reduce the total number of active service providers to no more than two

Question 5

Which ITIL document governs performance targets and responsibilities between two internal IT groups within the same service provider organization?

Accepted Answer

Operational Level Agreement

Answer

Underpinning Contract

Answer

Service Level Agreement

Answer

Statement of Work

Question 6

When evaluating a sourcing decision, Total Cost of Ownership (TCO) should encompass:

Accepted Answer

All direct and indirect costs across the full service lifecycle, including transition and exit costs

Answer

Only the initial licensing and contract fees paid to the vendor

Answer

Only the infrastructure and hardware costs associated with delivering the service

Answer

The vendor's internal operating costs and profit margins

Question 7

Which governance mechanism enables organizations to verify that their sourced services remain competitively priced and at market-standard quality over time?

Accepted Answer

Benchmarking clauses embedded in supplier contracts

Answer

Triggering an immediate contract renegotiation each year

Answer

Removing all quantitative SLA targets from the agreement

Answer

Converting to an insourcing model as soon as costs increase