ITIL4-DPI Direct, Plan and Improve Practice Question
A business unit wants to outsource a core service. According to DPI, what is the most appropriate first step in the decision-making process?
⚠ Common exam trap
Candidates often choose immediate procurement or cost-benefit analysis steps, forgetting that DPI principles dictate evaluating strategic value and alignment before any operational action.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Assess the impact on organizational value and strategic objectives.
The first step in any significant strategic decision is to evaluate how the change impacts value creation. This requires looking at the organization's vision, objectives, and the current capability to deliver the service internally. By assessing the strategic alignment, the organization ensures that outsourcing is not just a cost-saving measure but a way to enhance or maintain service value for the end user before initiating procurement activities.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Initiate a competitive tender process to find potential vendors.
Why it's wrong here
Starting the procurement process before understanding the strategic implications is premature. A tender might result in selecting a vendor that doesn't fit the organization's long-term objectives. Strategy must drive procurement, not the other way around. This approach risks losing control over core competencies and failing to deliver value.
- ✓
Assess the impact on organizational value and strategic objectives.
Why this is correct
Evaluating the impact on value and strategy is crucial for ensuring that outsourcing aligns with the organization's goals. This assessment prevents strategic drift and ensures that decisions are made based on long-term benefits rather than short-term convenience. It is the necessary starting point for responsible, outcome-oriented strategic management.
- ✗
Consult the legal department to draft the service level agreement.
Why it's wrong here
Legal considerations are important, but they come after the strategic decision to outsource. Drafting contracts before deciding if outsourcing makes sense is an inefficient use of legal resources. This step assumes that the decision has already been made, which bypasses the necessary strategic analysis required by DPI.
- ✗
Notify the internal team that their roles will be redundant.
Why it's wrong here
Communicating redundancy before a decision is finalized is destructive to morale and productivity. It creates unnecessary uncertainty and could lead to the loss of key talent before a clear plan is in place. Managing the human aspect of change should be done with care, transparency, and correct timing.
About these practice questions
Courseiva writes every ITIL4-DPI question from scratch — 102 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or dumps. Learn why practice questions differ from exam dumps →
JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official PeopleCert/AXELOS exam blueprint
This ITIL4-DPI practice question is part of Courseiva's free PeopleCert/AXELOS certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the ITIL4-DPI exam.