ITIL 4 Foundation Practice Exam

Contracts and agreements with suppliers are an output of which value chain activity?

1. Improve

2. Obtain/build

3. Engage

4. Deliver

The correct answer is: Engage

The correct choice is the activity of engaging. In the context of the ITIL framework, engaging encompasses the activities that involve maintaining relationships with various stakeholders, including suppliers. This phase includes negotiating contracts and building strong partnerships that are essential for service management. Engaging with suppliers is critical because it lays the groundwork for effective collaboration and ensures that the organization can obtain the necessary resources and services to support its goals. Contracts and agreements are formalized during this phase, which specify the expectations and deliverables between the organization and the suppliers. This relationship management is vital for ensuring that mutual interests are aligned, and service levels are met throughout the partnership. In contrast, other activities like obtaining/building focus more on the actual procurement and development of services or products, while deliver centers on the execution and delivery of those services. Improve is concerned with the continual enhancement of services and processes. While all these activities are interconnected in the value chain, contracts and agreements specifically arise from the engagement process, reinforcing the importance of effective stakeholder relationships.