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What You Need to Know About IT Vendor Management

Nov 8, 2021 11:38:29 AM

When you’re running an entire business, finding a single vendor to meet all your IT needs is nearly impossible, which is why most organizations look to a network of third-party vendors and partners. But, with opening your business up to this network, comes the risk of your data being vulnerable to insecure exposure.
 
That's where IT Vendor Management comes in. Vendor Management allows companies to consolidate their solutions as well as ensure they are getting the best value while mitigating risk across the company. 
 

What is IT Vendor Management?

Vendor management is a process that allows organizations to control costs, strengthen service, and reduce risk throughout the process of outsourcing to vendors all while ensuring that they are getting the most value out of their investment. In IT terms, this means implementing technologies, processes, policies, and procedures that support the needs of the business.
 

Vendor management addresses four key areas:

  • Contracts. Managing new contract acquisition.
  • Performance. Ensuring quality customer service with no internal disruptions.
  • Relationships. Gauging partnership value.
  • Risk. Assessing and alleviating risk throughout the company.

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What is the process of IT Vendor Management?

There are 6 key steps when it comes to IT Vendor Management:

  1. Develop a strategy.
    A solid IT vendor management strategy can aid in an organization's ability to determine which vendor best suits the company’s needs while keeping in mind relevant features, price, availability, risk, and security.
  2. Identify your selection criteria.
    Identify what you’re unwilling to compromise on, a timeline for making these decisions, and establish a working relationship between your vendors and your organization. This will ensure that both you and your vendors goals fall in line with each other and expectations are met.
  3. Write a bid document.
    Formalize the process with a written document to properly summarize your company’s needs, ask the right questions of potential vendor candidates, and get the most accurate information back to help you make your decision.
  4. Evaluate and select suppliers.
    Look back at your original vendor management strategy to help you make the best, most unbiased decision that accounts for all your selection criteria, not just the cheapest route. 
  5. Negotiate the contract.
    After you’ve selected a vendor that meets your needs, to pursue, work with them to negotiate the terms of your agreement. While a potentially lengthy process, getting the contract right early on will ensure long-term success throughout your vendor partnership.
  6. Manage the relationship.
    Maintaining engagement with your vendors is what's going to help you to get the most out of the relationship. Treat your vendors more like business partners, staying in contact with them regularly, involving them in strategy,  and devoting time to getting to know their business as well. Doing these things will help establish trust that will result in long-term business deals as opposed to switching up vendors, ultimately costing your business more money in the long-run.

Why Choose cite tech?

If left unmanaged, vendor partnerships can quickly start to unravel. However, by incorporating an IT Vendor Management service into your organization, it can help create a strong, impactful partnership resulting in achieving your business goals. Learn more about how cite tech has helped other businesses with their experienced IT solutions team!

Our team at Cite Technology Solutions can help with the implementation of technologies, processes, policies, and procedures that support the needs of your business!

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