The most effective way to define needs for an outsourced service, particularly a less critical one, is by focusing on measurable outcomes and goals. This approach aligns with the ITIL principle of value co-creation. By defining what needs to be achieved rather than how it should be done, the organization empowers the service provider. This gives the provider the flexibility to innovate, use their expertise, and take full ownership of delivering the required results. This outcome-based method fosters a stronger partnership and ensures the service delivers tangible value without requiring micromanagement from the customer organization.

A. This is too narrow. While financial targets are important, they represent only one aspect of value; the primary focus should be on the service outcomes that justify the cost.

B. This is overly prescriptive. Linking requirements to a specific "current service solution" restricts the provider's ability to innovate and improve the service, which is a key benefit of outsourcing.

D. This incorrectly places the burden of defining internal processes (value streams) on the customer. The customer should define the desired outcomes, not the provider's operational methods.

---

1. AXELOS

ITIL® 4: Drive Stakeholder Value. TSO (The Stationery Office)

2020.

Section 4.3.3

"Defining service requirements": This section explicitly advocates for outcome-based requirements. It states

"Requirements should be expressed in terms of the outcomes that the service consumer wants to achieve

rather than the specific features or functions of the service... This gives the service provider more flexibility in how they design and deliver the service

and it can lead to more innovative and effective solutions." This directly supports option C.

Section 2.3.2

"Focus on value": This section explains that value is the "perceived benefits

usefulness

and importance of something." It is co-created through the achievement of outcomes

supported by outputs. Defining needs through outcomes (Option C) is the most direct way to focus on value.

Section 4.2.1

"Agreeing and planning value co-creation": This section emphasizes the collaborative agreement on intended outcomes. "The service provider and service consumer should agree on the intended outcomes of the service and how the service will help the service consumer to achieve them." This reinforces the principle behind option C.