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CGEIT · Question #514

When an enterprise is evaluating potential IT service vendors, which of the following BEST enables a clear understanding of the vendor's capabilities that will be critical to the enterprise's strategy

The correct answer is A. Due diligence process. When evaluating potential IT service vendors, conducting a thorough due diligence process best enables a clear understanding of their capabilities critical to the enterprise's strategy. This comprehensive investigation covers all relevant aspects of the vendor's operations and of

Submitted by obi.ng· Apr 18, 2026Governance of Enterprise IT

Question

When an enterprise is evaluating potential IT service vendors, which of the following BEST enables a clear understanding of the vendor's capabilities that will be critical to the enterprise's strategy?

Options

  • ADue diligence process
  • BIndependent audit results
  • CHistorical service level agreements (SLAs)
  • DBenchmarking analysis results

How the community answered

(26 responses)
  • A
    73% (19)
  • B
    8% (2)
  • C
    15% (4)
  • D
    4% (1)

Why each option

When evaluating potential IT service vendors, conducting a thorough due diligence process best enables a clear understanding of their capabilities critical to the enterprise's strategy. This comprehensive investigation covers all relevant aspects of the vendor's operations and offerings.

ADue diligence processCorrect

A comprehensive due diligence process involves a deep dive into a vendor's financial stability, operational processes, security posture, technical capabilities, legal standing, and past performance. This holistic evaluation provides the most complete and accurate understanding of how well a vendor's capabilities align with and can support the critical strategic needs of the enterprise.

BIndependent audit results

Independent audit results provide a snapshot of compliance or specific control effectiveness, but they do not offer a full, strategic picture of a vendor's overall capabilities, adaptability, or fit with the enterprise's specific strategic needs.

CHistorical service level agreements (SLAs)

Historical SLAs indicate past performance against agreed metrics, which is useful, but they don't necessarily reveal the full breadth of a vendor's strategic capabilities or their potential to adapt to future enterprise needs.

DBenchmarking analysis results

Benchmarking analysis compares a vendor's offerings against industry standards or competitors, which provides comparative data but often lacks the specific, in-depth insight into a vendor's unique capabilities and how they align with a particular enterprise's strategy.

Concept tested: Vendor capability assessment

Topics

#Vendor management#Due diligence#IT service procurement#Strategic alignment

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