Governance of Enterprise IT (CGEIT) Certification Practice Exam

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What is the primary focus of the Outsourcing Process Model?

Cost reduction in IT services
Improvement of in-house capabilities
Management of supplier relationships
Strategic planning and execution

The correct answer is: Strategic planning and execution

The primary focus of the Outsourcing Process Model is on strategic planning and execution. This encompasses evaluating the overall business strategy and identifying areas where outsourcing can provide value to the organization. In this context, strategic planning involves assessing the core competencies of the organization, determining which functions may be effectively outsourced, and ensuring alignment with the organization's long-term goals. The execution aspect encompasses the implementation of outsourcing initiatives, requiring careful oversight to ensure that the objectives of outsourcing align with the strategic vision. This facilitates effective partnerships with external service providers and promotes collaboration, thus ensuring that outsourced services meet business needs and contribute positively to the organization's performance. By prioritizing strategic planning and execution, the Outsourcing Process Model helps organizations to not only reduce costs or improve service quality but also to create a framework for managing their outsourcing arrangements in a way that supports their overall business strategy.