SIAMP practice question 7 of 15

ZYXH is the head office of the ZYX corporation, with responsibility for corporate strategy, global investments, procurement, contract governance and…

Full set: 56 questions
ZYXH is the head office of the ZYX corporation, with responsibility for corporate strategy, global investments, procurement, contract governance and financial reporting of the performance of ZYX Corporation The corporate strategy of ZYX contains these objectives - Ensure delivery against contracts - Invest in and train all ZYX staff - Reduce operating costs - Be ready to adapt to change The ZYX strategy requires that the costs of the service integrator should be as low as possible The ZYX Board of Directors has introduced additional policies that supplement the corporate strategy The policies immediately apply to all new services, providers, and contracts and include the following guidelines - No contract can be longer than 2 years duration Service levels in contracts must be continually updated to reflect increasing customer requirements - Service providers who fail service levels for more than 3 consecutive months must be replaced The service integrator must also be replaced if the end to end service levels fail for 3 consecutive months - The number and variety of service providers must be increased - There must be more small providers and commodity providers - Additional staff can be recruited within ZYX where there are clear business benefits In this scenario, who would be most likely to be proposed as the service integrator?
Answer options
A: OUTSCO Correct answer
B: SIAMRUS
C: ZYXII
D: ZYXS
Correct Answer:
A. OUTSCO
Explanation

 Introduction: ZYXH's corporate strategy and additional policies require a cost-effective service integrator with the capability to adapt to frequent changes in service providers and contracts.  Analyzing the Options:
Option A (OUTSCO): Likely to offer competitive pricing and flexibility required to manage a large number of small and commodity providers. Aligns with the policy of no contract longer than 2 years and frequent updates to service levels.
Reference: Cost-effectiveness and flexibility are key requirements for the service integrator in the ZYX strategy.
Option B (SIAMRUS): While experienced, may not be the most cost-effective option considering the policies requiring frequent changes and updates.
Option C (ZYXII): An internal integrator may struggle with the cost constraints and requirements for frequent updates and changes in service providers.
Option D (ZYXS): Similar to ZYXII, may not be the best fit given the stringent cost and flexibility requirements.  Conclusion:
Option A (OUTSCO) is the most likely choice as it aligns with ZYX's strategy for cost-effective and flexible service integration.

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