Which governance element is essential when leveraging external SMEs and vendors for training?

• A. Rely on informal agreements with vendors
• B. Focus only on cost savings and delivery speed
• C. Establish clear SLAs, RACI, qualification criteria, knowledge transfer plans, quality assurance, IP rights management, and vendor performance reviews
• D. Limit governance to internal staff; no external vendors

Answer: (C)

Governance when using external SMEs and vendors for training requires formal, clearly defined controls. Relying on informal agreements creates ambiguity about roles, expectations, and accountability, and can lead to inconsistent quality and disputes. Focusing only on cost savings or delivery speed misses other vital outcomes like capability building, risk management, and protection of assets. The best approach includes: service level agreements to specify performance and remedies; a RACI to clarify who is responsible, accountable, consulted, and informed; qualification criteria to ensure vendors have the necessary expertise; knowledge transfer plans to guarantee internal teams can sustain and build the capability after the engagement; quality assurance processes to monitor outputs against standards; IP rights management to protect ownership and reuse of training materials; and regular vendor performance reviews to drive continuous improvement. Together, these elements align external work with business goals, ensure accountability, safeguard intellectual property, and promote lasting training capability.