Vendor Management Consulting & Support Services for the IT Spend Category
Source One’s IT and Supplier Relationship Management experts can provide your strategic sourcing department with the structure, governance, processes, and templates – and the boots on the ground – to implement and maintain strong IT Vendor Management.
Strategic Sourcing is often unable to make significant inroads into the IT spend category. Traditionally, large organizations would see their procurement department manage the sourcing and contracting process on behalf of the IT stakeholders, who had already identified the technology requirements and the potential IT vendors. After contract execution, IT would take ownership of implementation and day-to-day operations. Any kind of “IT vendor management” would be performed sporadically if issues arose or if time permitted. But when critical IT vendor relationships are unmanaged, and when Procurement is relegated to just cutting the POs, the door is left open for a number of potential vendor issues and risks, including:
- Missed opportunities to leverage spend
- Unclear terms and conditions and unfair penalties
- Duplicative IT services being provided by the same vendor, or multiple vendors
- Uncontrolled IT price increases or off-contract rates
- Non-compliance findings during audit
- Paying for decommissioned services
- Performance and support falling below contracted terms and SLAs
- Non-continuity of operations as critical applications fail
Strong IT Vendor Management led by Strategic Sourcing, on the other hand, allows your IT stakeholders, your Procurement organization, and your IT Vendors to resolve issues even before they manifest. Moreover, your company is afforded the opportunity to become the ideal IT customer and secure its ideal IT suppliers. With its natural relationships with Finance and functional stakeholders, the Procurement and Strategic Sourcing department is in a prime position to facilitate IT requirements from identification to sourcing to implementation fulfillment while protecting the bottom line and the continuity of operations.
However, getting an IT Vendor Management program off the ground is easier said than done. Source One’s team of IT Strategic Sourcing veterans can help. Our Procurement Transformation and Supplier Relationship Management experts have decades of experience supporting industry leaders in building strong capabilities in centralized Procurement and Vendor Management. With our specialized expertise within the IT spend category, Source One can help your IT and Strategic Sourcing departments come together to:
- Achieve corporate alignment on the need for IT Vendor Management
- Discern company-wide IT Vendor Management strategy and objectives
- Define IT Vendor Management roles & responsibilities
- Outline and finalize your company’s IT Vendor Management lifecycle
- Perform IT Vendor Segmentation to allow for right-sized management
- Develop the skills and knowledge of your IT Vendor Management workforce
- Identify the right technology platforms to support your IT Vendor Management business processes
- Solidify your IT Vendor Performance Management framework (Metrics, KPIs, SLAs, Scorecards)
- Pinpoint and eliminate specific IT Vendor Risks
Trust Source One’s cross-industry vendor management experience as well as our command of the IT spend category to put your company on the right track for properly managing IT Vendors. We have a variety of ready-made IT Vendor Management tools and templates for creating and administering solid practices within your company, and we can provide the manpower to get things moving. Source One’s IT Vendor Management team knows best-in-class, but more importantly we know how to help your Strategic Sourcing & Procurement organization implement best for you. Contact Source One’s IT Vendor Management experts today.
Proven Technigues for IT Vendor Management
As technology evolves and becomes more complex, the level of difficulty in managing your business requirements increases. But as more and more functions are being outsourced or moved to the cloud in the “Everything as a Service” environment, this level of difficulty seemingly goes down. However, a “set it and forget it” approach has no place where your business’ critical infrastructure is concerned. All spend categories require deliberate and well-constructed Vendor Management Programs to ensure requirements are met and value is delivered. This is especially true for the IT Spend Category, which touches every part of the business.
Since 1992, Source One’s IT Vendor Management experts have helped leading organizations implement Procurement Transformation Initiatives and stand up Supplier Relationship Management capabilities.
Risk Assessment For IT Vendors
Selecting the appropriate IT vendor governance plans for all the suppliers of your company’s IT services and equipment begins with properly assessing risk through questions such as:
- Will the supplier have access to personal data, e.g., consumer, distribution partners, or Employee Data (i.e., Address, Policy Number & Name, phone numbers, drivers license numbers)?
- Does the process covered require a Disaster Recovery Plan?
- What is the supplier’s financial risk category (e.g., Credit Rating or Frisk Score)?
- Are the supplier’s services subject to compliance with laws or regulations?
- Is this a “cloud” based service?
- Will the supplier subcontract (outsource) any parts of the process they perform?
- Will the services involve any “offshoring” (i.e., outsourced activity to be conducted outside of home country)
Source One Vendor Risk Management Services