Governance of Enterprise IT (CGEIT) Certification Practice Exam

What is the critical concern raised during the Operate phase of the Outsourcing Process Model?

1. Inability to select qualified suppliers

2. High turnover rates of IT staff

3. Limited options for correcting issues

4. Poor alignment with business strategy

The correct answer is: Limited options for correcting issues

The critical concern during the Operate phase of the Outsourcing Process Model revolves around the limited options for correcting issues. During this phase, organizations may face challenges related to service delivery, performance standards, or compliance with the agreed terms. Since responsibilities may be transferred to an external supplier, the organization's ability to quickly amend or rectify problems can be constrained. This can result from contractual limitations, reliance on the supplier for technical fixes, or insufficient communication channels. When addressing issues that arise during this phase, organizations may find themselves with restricted leverage to negotiate changes or enforce compliance, making it difficult to resolve problems effectively and efficiently. As such, understanding the implications of limited corrective action is critical in managing the operational relationship with the outsourcing partner and ensuring sustained performance aligned with organizational objectives. This insight is essential for risk management and strategic oversight in the governance of enterprise IT.