CGEIT · Question #197
An IT manager is trying to determine optimal IT service levels. Which of the following should be the PRIMARY consideration?
The correct answer is C. Cost-benefit analysis. When determining optimal IT service levels, the primary consideration should be a comprehensive cost-benefit analysis.
Question
An IT manager is trying to determine optimal IT service levels. Which of the following should be the PRIMARY consideration?
Options
- AInternal rate of return
- BRecovery time objective (RTO)
- CCost-benefit analysis
- DResource utilization analysis
How the community answered
(21 responses)- A19% (4)
- B5% (1)
- C71% (15)
- D5% (1)
Why each option
When determining optimal IT service levels, the primary consideration should be a comprehensive cost-benefit analysis.
Internal rate of return (IRR) is a financial metric for evaluating investment profitability, which is a component of a larger cost-benefit analysis, but not the primary consideration for all aspects of service level optimization.
Recovery Time Objective (RTO) is a specific disaster recovery metric, important for business continuity, but it represents only one aspect of service levels and not the overall primary consideration for determining optimal levels across all services.
Optimal IT service levels are a balance between the cost of providing a certain level of service and the benefits (or avoided costs/risks) that level of service brings to the business. A cost-benefit analysis helps an IT manager make informed decisions by evaluating the financial implications and value derived from different service level options, ensuring that investments in service quality are justified and aligned with business needs.
Resource utilization analysis helps in operational efficiency and capacity planning but does not directly determine the strategic optimal level of service in terms of business value and cost-effectiveness.
Concept tested: IT service level optimization
Source: https://learn.microsoft.com/en-us/azure/cloud-adoption-framework/strategy/return-on-investment
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