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CGEIT · Question #308

An IT department outsourced application support and negotiated service level agreements (SLAs) directly with the vendor Although the vendor met the SLAs business owner expectations are not met and…

The correct answer is D. assigning responsibility for vendor management. The problem indicates a disconnect between vendor performance, SLAs, and business owner expectations, suggesting a lack of clear ownership and oversight for the vendor relationship.

Submitted by marco_it· Apr 18, 2026Governance of Enterprise IT

Question

An IT department outsourced application support and negotiated service level agreements (SLAs) directly with the vendor Although the vendor met the SLAs business owner expectations are not met and senior management cancels the contract This situation can be avoided in the future by:

Options

  • Aimproving the business requirements gathering process
  • Bimproving the negotiation process for service level agreements (SLAs)
  • Cimplementing a vendor performance scorecard
  • Dassigning responsibility for vendor management

How the community answered

(22 responses)
  • A
    9% (2)
  • B
    23% (5)
  • C
    5% (1)
  • D
    64% (14)

Why each option

The problem indicates a disconnect between vendor performance, SLAs, and business owner expectations, suggesting a lack of clear ownership and oversight for the vendor relationship.

Aimproving the business requirements gathering process

While improving business requirements gathering is important, the core issue described is not that the requirements were wrong, but that the *translation* of those into monitorable SLAs and the ongoing management of the vendor against actual business needs was flawed.

Bimproving the negotiation process for service level agreements (SLAs)

The problem states the vendor *met* the SLAs, implying the issue isn't solely with the SLA negotiation itself, but rather with how those SLAs aligned with actual business expectations and how the vendor relationship was managed beyond the contract.

Cimplementing a vendor performance scorecard

A vendor performance scorecard is a tool used within vendor management; simply implementing it without clear responsibility for interpreting and acting on its results wouldn't solve the underlying issue of unmet expectations.

Dassigning responsibility for vendor managementCorrect

The scenario highlights a gap where the vendor met the technical SLAs but failed to meet business owner expectations, leading to contract cancellation. This indicates a lack of holistic vendor management that would bridge the technical performance with actual business value and expectations. Assigning clear responsibility for vendor management ensures continuous oversight, communication, and alignment between the vendor's services, SLAs, and evolving business needs, thus preventing such disconnects.

Concept tested: Effective vendor relationship management

Source: https://learn.microsoft.com/en-us/azure/cloud-adoption-framework/ready/considerations/vendor-management

Topics

#Vendor Management#IT Governance#Service Level Agreements (SLAs)#Business Value

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