An internal auditor performed a review of IT outsourcing and found that the service provider was failing to meet the terms of the service level agreement. Which of the following approaches is most appropriate to address this concern?
C) The organization should ensure that there is a clear management communication strategy and path for evaluating and reporting on all outsourced services concerns.
B) The organization should proactively monitor the performance of the service provider, escalate concerns, and use penalty clauses in the contract where necessary.
A) The organization should review the skill requirements and ensure that the service provider is maintaining sufficient expertise and retaining skilled resources.
B) The organization should work with the service provider to review the current agreement and expectations relating to objectives, processes, and overall performance.
A) The organization should proactively monitor the performance of the service provider, escalate concerns, and use penalty clauses in the contract where necessary.
Option B is the most appropriate approach. Proactive monitoring and using penalty clauses are crucial to ensure the service provider meets the agreed terms.
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