Governance of Enterprise IT (CGEIT) Certification Practice Exam

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Study for the Governance of Enterprise IT (CGEIT) Certification Exam. Prepare with quizzes and multiple choice questions, each with detailed explanations. Get set for your certification!

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Which of the following is a primary benefit of outsourcing non-core business processes?

Increased operational control.
Improved focus on core competencies.
Reduction in operational costs.
Enhanced risk management.

The correct answer is: Improved focus on core competencies.

Improved focus on core competencies is a primary benefit of outsourcing non-core business processes because it allows organizations to concentrate their resources, time, and energy on what they do best. By delegating tasks that are not central to their main business objectives, companies can maximize efficiency and effectiveness in their key areas of expertise. This strategic focus enables organizations to enhance their innovation, customer service, and overall performance by directing their efforts toward activities that drive significant value. When non-core processes are outsourced, it frees up internal teams to solve complex problems, enhance product development, or engage more deeply with customers. Additionally, by not getting bogged down with routine or peripheral functions, businesses can respond more nimbly to market changes and customer needs, ultimately strengthening their competitive advantage. While there are also benefits such as cost reduction, enhanced risk management, and operational control, the most significant advantage lies in the ability to ensure that the organization maintains its focus on core business areas which are crucial for growth and success.