CGEIT · Question #396
An enterprise's chief information officer (CIO) has been receiving complaints from business executives regarding the amount their units are being charged for IT services. To maintain a good relationsh
The correct answer is D. quantify consumption and service level agreement (SLA) achievements per business unit.. To address complaints about IT service charges, the CIO's first step should be to quantify IT service consumption and SLA achievements for each business unit to understand the basis of the charges.
Question
An enterprise's chief information officer (CIO) has been receiving complaints from business executives regarding the amount their units are being charged for IT services. To maintain a good relationship with business peers, the CIO wants to be responsive to these complaints. To address this issue, the FIRST step should be to:
Options
- Aagree to reduce charge rates and improve relationship management with the business.
- Blook into outsourcing of support functions to drive down the cost structure.
- Cask the chief financial officer (CFO) about budget revisions for the business units' IT
- Dquantify consumption and service level agreement (SLA) achievements per business unit.
How the community answered
(24 responses)- A13% (3)
- B8% (2)
- C4% (1)
- D75% (18)
Why each option
To address complaints about IT service charges, the CIO's first step should be to quantify IT service consumption and SLA achievements for each business unit to understand the basis of the charges.
Agreeing to reduce rates without understanding the underlying costs and consumption might lead to unsustainable IT operations or simply shift the problem.
Outsourcing is a potential solution for cost reduction, but it is a strategic decision that should follow an understanding of current costs and consumption, not the first step in addressing charge complaints.
Involving the CFO for budget revisions is premature; the CIO first needs to understand the factual basis for the current charges and consumption before discussing budget changes.
Before making any decisions or changes, the CIO needs concrete data to understand why the charges are what they are, by measuring actual service usage and performance against agreed-upon SLAs. This data-driven approach provides transparency and a factual basis for discussion, enabling informed decisions regarding cost optimization or value demonstration.
Concept tested: IT financial management and transparency
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