CSM Vendor Management & Procurement Flashcards
6 cards from real CSM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CSM Vendor Management & Procurement flashcards as text
What does 'total cost of ownership' (TCO) include when evaluating a software vendor solution?
Answer: All costs over the solution's lifecycle including licensing, implementation, training, maintenance, and decommissioning
TCO encompasses every cost associated with a solution throughout its entire lifecycle, providing a more accurate financial picture than the initial purchase price alone.
What is a key indicator that a vendor relationship should be escalated for review or termination?
Answer: Consistent failure to meet SLA targets despite documented remediation plans
Repeated SLA failures despite formal remediation efforts indicate a systemic performance problem that puts business operations at risk and justifies escalation or contract termination.
In the context of software vendor management, what is 'vendor consolidation' and what is its primary benefit?
Answer: Reducing the number of vendors to simplify management, improve leverage, and reduce overhead
Vendor consolidation reduces the total number of vendor relationships, which simplifies contract management, increases purchasing leverage, and lowers administrative overhead.
Which of the following BEST describes an 'indemnification clause' in a software vendor contract?
Answer: A provision where one party agrees to protect the other from certain third-party legal claims or losses
An indemnification clause obligates one party to cover the other's legal costs, damages, or losses arising from specified events, such as IP infringement claims by a third party.
A software manager wants to reduce dependency on a single cloud vendor. Which strategy BEST mitigates this risk?
Answer: Adopting a multi-cloud architecture with portable, vendor-neutral technologies
A multi-cloud approach using open standards and vendor-neutral technologies (e.g., Kubernetes, Terraform) reduces lock-in and ensures workloads can be migrated or distributed across providers.
What is the MOST appropriate action for a software manager when a critical vendor announces it will discontinue a key product used in production?
Answer: Activate a contingency plan that includes evaluating alternatives, negotiating extended support, and planning a migration timeline
Activating a contingency plan ensures a structured response: assessing alternatives, securing extended vendor support if needed, and executing a migration before the EOL date to avoid operational disruption.