Governance of Enterprise IT (CGEIT) Certification Practice Exam

In the Outsourcing Process Model, what does the Engage phase primarily focus on?

1. Evaluating the current IT portfolio

2. Selecting and negotiating with suppliers

3. Monitoring ongoing supplier performance

4. Identifying internal resources

The correct answer is: Selecting and negotiating with suppliers

The Engage phase of the Outsourcing Process Model is essential because it focuses on selecting and negotiating with suppliers. This phase is crucial for establishing strong relationships and ensuring alignment between your organization's needs and what the supplier can offer. During this phase, organizations evaluate potential suppliers based on criteria such as their capabilities, reliability, and cost-effectiveness. Effective negotiation during this stage is also important to secure favorable terms that will benefit both parties in the long term. While the other phases in the model serve important functions, they do not capture the essence of the Engage phase. For example, evaluating the current IT portfolio is associated with earlier phases where the need for outsourcing is determined, and identifying internal resources pertains to recognizing what capabilities the organization already possesses before engaging with external suppliers. Monitoring ongoing supplier performance is a critical step that occurs after agreements have been made and services are being delivered, focusing on the effectiveness of the outsourcing arrangement.