Original Source: TBI Central

“In TBI’s experience, many large complex organizations with multiple IT vendors find it beneficial to centralize vendor management as a function within the Program Office or as a separate entity, depending on the company’s specific organizational structure. If the current Program Office is managed by or heavily dependent on an outside vendor, considering a separate Vendor Management Organization may be appropriate.

Whatever the specific circumstances, and whether your organization formally or informally restructures or creates a Vendor Management function, a centralized model allows for more effective contract control, cost tracking, resource/asset management, and performance measurement across all vendor-related projects/programs. This is particularly true if the vendor environment is complex (many vendors, vendors crossing functional areas, few vendors with many contracts, etc.). Key roles usually represented in a centralized VM model include:..”

Contributors: Open Source
Categories: Industry Articles, SIG U Resource
SRC Type: Risk Management, Sourcing Management, Third Party Management