Certified in the Governance of Enterprise IT (CGEIT) — Question 100

After shifting from lease to purchase of IT infrastructure and software licenses, an enterprise has to pay for unexpected lease extensions causing significant cost overruns. The BEST direction for the IT steering committee would be to establish:

Answer options

• A. a program to annually review financial policy on overruns.
• B. an end-of-life program to remove aging infrastructure from the environment.
• C. budget cuts to compensate for the cost overruns.
• D. a policy to consider total cost of ownership in investment decisions.

Correct answer: D

Explanation

The best approach is to establish a policy to consider total cost of ownership in investment decisions because it ensures that all costs associated with an asset are evaluated before making a purchase. The other options either address symptoms of cost overruns or suggest reactive measures, rather than a proactive strategy to avoid future issues.