ITIL Sourcing Strategy & Governance 3

Question 1

What is offshoring as a sourcing strategy in ITIL Service Strategy?

Accepted Answer

Relocating service delivery to a different country, typically to leverage cost or talent advantages

Answer

Moving services to a wholly owned subsidiary in the same country

Answer

Providing IT services exclusively to customers in other countries

Answer

Outsourcing to a provider operating in the same geographic region as the customer

Question 2

Application Service Provision (ASP) as a sourcing model is best characterized by:

Accepted Answer

A provider delivering standardized software applications over a network to multiple customers on a subscription basis

Answer

The customer developing and hosting custom applications entirely in-house

Answer

Outsourcing application development projects to an offshore development firm

Answer

Internal IT teams taking over management of third-party software licenses

Question 3

In an outsourced ITIL service model, the 'retained organization' refers to:

Accepted Answer

The core internal team responsible for managing supplier relationships, contracts, and governance

Answer

The entire IT headcount that avoids redundancy post-outsourcing

Answer

The vendor's dedicated account management and delivery team

Answer

Senior executives responsible for approving IT capital expenditure

Question 4

In a complex multi-sourcing environment, which entity is responsible for managing interfaces between suppliers and ensuring end-to-end service coherence?

Accepted Answer

A service integrator — an internal or external entity that coordinates multiple supplier outputs into unified delivery

Answer

The vendor providing the largest share of contracted services

Answer

The CIO, who directly approves all individual supplier contracts

Answer

An external auditing firm that reviews each supplier's compliance annually

Question 5

What strategic risk is most associated with single-source outsourcing — relying on only one external provider?

Accepted Answer

Vendor lock-in and significantly reduced negotiating leverage

Answer

Overspending on governance and contract management activities

Answer

Managing too many Service Level Agreements simultaneously

Answer

Maintaining excessive internal headcount alongside the external provider

Question 6

Which sourcing strategy is most appropriate when an organization needs highly specialized expertise that would be economically inefficient to develop and maintain in-house?

Accepted Answer

Outsourcing to a provider with existing deep expertise in that specialization

Answer

Insourcing all specialized functions to maintain full control

Answer

Eliminating the service to avoid the cost of specialized skills

Answer

Reducing service scope until internal staff can manage it

Question 7

Why is exit management planning important in ITIL sourcing governance, and when should it begin?

Accepted Answer

It ensures a smooth service transition if the sourcing arrangement changes, and should be planned from contract inception

Answer

It determines the initial contract pricing structure and should begin at renewal

Answer

It provides the framework for evaluating vendor technical capabilities during the tender phase

Answer

It defines day-to-day governance roles and should be established six months before contract end