IT Strategic Vendor Management: Achieving Savings and Improving Performance in Austere Times
This post, written by Behrad Mahdi and Raj Patel, originally appeared on Public Spend Forum.
Federal information technology (IT) leaders increasingly face a dilemma—delivering the same or higher levels of mission-critical IT services to their constituents while managing with fewer resources and dollars. To solve this dilemma, many leaders are scouring their IT portfolios for money-saving opportunities. As they conduct this exercise, many are discovering strategic vendor management (SVM) to be a critical enabler—one that yields significant savings while also increasing effectiveness and mission delivery.
Typically federal IT leaders begin with a functional/categorical view of IT only to realize that most of their critical IT infrastructure is provided by large IT manufacturers—think Microsoft, Oracle, IBM, and so on—that offer products and services across many functional IT categories. The realization that a few large companies dominate an agency’s IT vendor base clarifies a critical vendor management challenge: identifying near-term savings opportunities while developing long-term approaches to increasing competition and managing total costs. Moreover, agencies must seek ways to engage directly with vendors to maximize performance, develop enterprise visibility, and most importantly, yield optimized enterprise pricing.
Unfortunately, as federal IT leaders attempt to manage their vendor base, they face common challenges.
To read what these challenges are, pop over to Public Spend Forum.
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