Optimizing vendor relationships

Date: November 22, 2010
Pages: 27
Price:
US$ 1,895.00
Publisher: Ovum
Report type: Brief Review
Delivery: E-mail Delivery (PDF)
ID: O9AE627BB2CEN
Leaflet:

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Optimizing vendor relationships
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Introduction

Outsourcing the right areas under the right types of sourcing arrangement with the right strategic partners is increasingly an important factor in determining the success or failure of organizations today.

Features and benefits
  • How to manage outsourcing relationships over their lifecycle, to ensure the required value is delivered.
  • Discover the key foundations for managing effective outsourcing relationships
Highlights

In evaluating approaches that help with achieving effective IT management, Ovum believes most organizations are likely to benefit from optimizing three aspects of dealing with their commercial arrangements with ICT vendors.

Your key questions answered
  • How do suppliers and customers agree on how value is to be measured, to optimize the benefit of the outsourcing relationship?
  • What are the risks associated with poorly managed software licensing?

SUMMARY

Catalyst
Ovum view
Key messages

OUTSOURCING RELATIONSHIPS MUST BE MANAGED OVER THEIR LIFECYCLE, TO ENSURE THE REQUIRED VALUE IS DELIVERED

Organizations need to take a strategic approach to outsourcing
Success can only be based on selecting the right work to outsource, and an effective approach to enable the required value to be realized
Managing the quality of service delivery is a key foundation for effective outsourcing relationships
Supplier and customer must agree how value is to be measured in order to optimize the benefit of the outsourcing relationship

RATIONALIZING THE NUMBER OF ICT SUPPLIER RELATIONSHIPS IS LONG OVERDUE IN MANY ORGANIZATIONS

Sustaining relationships with too many vendors can incur significant overheads
Selecting which vendors to terminate relationships with is a complex process
Reducing supplier numbers excessively could incur risk

ORGANIZATIONS THAT MANAGE SOFTWARE LICENSING POORLY INCUR SIGNIFICANT RISK AND/OR UNNECESSARY COST

Over-provisioning or under-licensing both cause problems and incur risk
Licensing complexity makes optimization a serious challenge
An automated approach to licensing compliance and optimization can deliver appreciable benefits

APPENDIX

Further reading
Author
Ovum Consulting
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