IT Strategic Vendor Management: Achieving Savings and Improving Performance in Austere Times Pt. 2

This post, written by Raj Patel and Behrad Mahdi, originally appeared on Public Spend Forum.

To read part two in our series on SVM, click here. Today we look at the first steps.

1. “Follow the money” as a starting point

Federal IT leaders with a “save money now” attitude have recognized that many, if not most, significant near-term savings strategies involve the large IT vendors with whom they spend the most. While focusing on a category (hardware, software, or service) or capability (data centers, software licensing, etc.) can yield significant medium-to-long term savings, a focus on vendor spend is the fastest way to yield meaningful cost-reduction. Some strategies include:

  • Consolidating hardware or software support payments into enterprise agreements
  • Renegotiating support-levels and service delivery for existing products or services
  • Right-sizing and standardizing hardware specifications
  • Securing enterprise licensing for future software demand.

To start the “Follow the money” approach, a federal IT leader should assess the current capabilities and technologies deployed within their organizations. While a full and detailed view can be difficult to obtain, a team can sample asset inventories and spend data, or interview key technical leads. This scan will quickly identify the main vendors providing technology for particular capabilities. Many federal IT leaders will find that their organization has stakeholders or technical leads who can easily name these major providers.

2. Enlist your vendors

Federal IT leaders who engage with their largest strategic IT vendors have a head start on overcoming many of the challenges identified at the outset of this paper.

To read the rest of this post, click here.

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