CGEIT Exam Dumps | An enterprise's chief information officer (CIO) has been receiving complaints from business executives

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Certified in the Governance of Enterprise IT Exam
ISACA.CGEIT.v2024-02-19.q241
Question 220

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Question 220/241

An enterprise's chief information officer (CIO) has been receiving complaints from business executives regarding the amount their units are being charged for IT services. To maintain a good relationship with business peers, the CIO wants to be responsive to these complaints. To address this issue, the FIRST step should be to:

A. agree to reduce charge rates and improve relationship management with the business.

B. look into outsourcing of support functions to drive down the cost structure.

C. ask the chief financial officer (CFO) about budget revisions for the business units' IT expenditures.

D. quantify consumption and service level agreement (SLA) achievements per business unit.

Correct Answer: D

The first step to address the issue of complaints from business executives regarding the amount their units are being charged for IT services should be to quantify consumption and service level agreement (SLA) achievements per business unit. This will help the CIO to understand the actual usage and performance of IT services by each business unit, as well as to justify and communicate the chargeback rates based on the value and quality of IT services delivered. Quantifying consumption and SLA achievements can also help identify and address any inefficiencies, discrepancies, or gaps in IT service delivery or chargeback methods.
Agreeing to reduce charge rates and improve relationship management with the business, looking into outsourcing of support functions to drive down the cost structure, and asking the CFO about budget revisions for the business units' IT expenditures are possible steps to take after quantifying consumption and SLA achievements, but they are not the first step. Agreeing to reduce charge rates without understanding the underlying causes of the complaints may result in underfunding or underpricing of IT services, which may affect their quality and sustainability. Improving relationship management with the business is important, but it should be based on transparent and accurate information about IT service consumption and chargeback.
Looking into outsourcing of support functions may reduce the cost structure, but it may also introduce new risks and challenges for IT governance and management. Asking the CFO about budget revisions may help align IT expenditures with business priorities, but it may not address the root causes of the dissatisfaction with IT chargeback.
References := IT Chargeback Drives Efficiency - Uptime Institute Blog; What is IT governance? A formal way to align IT & business strategy; Chargeback vs. IT Governance - HEIT Management.

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