CGEIT · Question #68
To benefit from economies of scale, a CIO is deciding whether to outsource some IT services. Which of the following would be the MOST important consideration during the decision-mak ng process?
The correct answer is B. Core IT processes. When considering outsourcing IT services for economies of scale, the most important consideration is identifying and retaining core IT processes that are strategic to the business.
Question
To benefit from economies of scale, a CIO is deciding whether to outsource some IT services. Which of the following would be the MOST important consideration during the decision-mak ng process?
Options
- AIT staff morale
- BCore IT processes
- COutsourcer's reputation
- DNew service level agreements (SLAs)
How the community answered
(24 responses)- A4% (1)
- B83% (20)
- C8% (2)
- D4% (1)
Why each option
When considering outsourcing IT services for economies of scale, the most important consideration is identifying and retaining core IT processes that are strategic to the business.
While IT staff morale is an important factor for internal employee management during outsourcing, it is not the most critical consideration for the strategic decision of what to outsource from a business perspective.
Outsourcing core IT processes that provide competitive advantage or are critical to the organization's unique value proposition can expose the business to significant risks and loss of strategic control, undermining long-term success.
An outsourcer's reputation is crucial for due diligence, but the decision of whether to outsource a particular service at all, especially considering its core strategic value, precedes vendor selection.
New service level agreements are a critical part of managing an outsourcing contract, but defining these comes after the strategic decision of which services are appropriate for outsourcing.
Concept tested: IT Outsourcing Strategy and Core Competencies
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