ITIL Question #538: Real Exam Question with Answer & Explanation

The correct answer is B: Underpinning contract. An underpinning contract is the formal ITIL agreement between an IT service provider and an external supplier that legally defines obligations and minimizes disputes.

Generic concepts and definitions

Question

Which formal agreement minimizes the risk of disputes that can occur between an IT service provider and an external supplier?

Options

AOperational contract
BUnderpinning contract
CServiceability contract
DService level contract

Explanation

An underpinning contract is the formal ITIL agreement between an IT service provider and an external supplier that legally defines obligations and minimizes disputes.

Common mistakes.

A. Operational contract is not a standard ITIL-defined term; the correct ITIL term for formalizing external supplier relationships is the underpinning contract.
C. Serviceability contract is an informal term sometimes used to describe supplier agreements, but underpinning contract is the precise ITIL-defined term for this purpose.
D. Service level contract is not a standard ITIL term; the equivalent customer-facing agreement is a Service Level Agreement, which governs provider-to-customer relationships rather than provider-to-supplier ones.

Concept tested. ITIL underpinning contract with external suppliers

Reference. https://wiki.en.it-processmaps.com/index.php/ITIL-Glossary/Underpinning-Contract-UC

Topics

#underpinning contract#supplier management#external supplier#formal agreements

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