ITIL Sourcing Strategy & Governance 3

Question 1

What is offshoring as a sourcing strategy in ITIL Service Strategy?

Accepted Answer

Relocating service delivery to a different country, typically to leverage cost or talent advantages

Answer

Offshoring moves service delivery functions to another country, commonly to access lower labor costs, extended operating hours, or specialized talent not available domestically.

Question 2

Application Service Provision (ASP) as a sourcing model is best characterized by:

Accepted Answer

A provider delivering standardized software applications over a network to multiple customers on a subscription basis

Answer

ASP involves a third-party provider hosting standardized applications and delivering them to multiple customers over a network, with customers paying on a subscription or usage basis rather than owning the software.

Question 3

In an outsourced ITIL service model, the 'retained organization' refers to:

Accepted Answer

The core internal team responsible for managing supplier relationships, contracts, and governance

Answer

The retained organization is the internal capability kept post-outsourcing to govern suppliers, manage contracts, define requirements, and ensure the business receives what it needs.

Question 4

In a complex multi-sourcing environment, which entity is responsible for managing interfaces between suppliers and ensuring end-to-end service coherence?

Accepted Answer

A service integrator — an internal or external entity that coordinates multiple supplier outputs into unified delivery

Answer

The service integrator role — whether filled internally or by a specialist provider — manages supplier interdependencies, resolves cross-supplier issues, and ensures the business experiences coherent end-to-end services.

Question 5

What strategic risk is most associated with single-source outsourcing — relying on only one external provider?

Accepted Answer

Vendor lock-in and significantly reduced negotiating leverage

Answer

Single-source dependency creates vendor lock-in — the organization becomes strategically dependent on one supplier, raising switching costs and weakening the organization's ability to negotiate or change providers.

ITIL - Intermediate Service Strategy Practice Test

ITIL - Intermediate Service Strategy Practice Test

ITIL Sourcing Strategy & Governance 3