Recent business trends like cloud, on-demand services, outsourcing or microservice architectures change the way companies operate nowadays. It makes business and IT infrastructure more complex and fragmented, due to outsourced services, combination of physical and virtual environment, on-premise and cloud solutions.
It demands changes in the way we used to manage our business, IT and mostly more complex and fragmented vendor ecosystem.
You need to know:
- What vendors provision your services and under what quality and conditions?
- Which of the vendors are strategic?
- Do you meet regularly and evaluate agreed and measured parameters?
- What are the actions and improvements you agreed with the vendor?
Regular vendor governance as a core practice
In times of vendor lock-in, you simply met the vendor who provides the key IT systems. Current practice is much different, as the systems become more fragmented and number of vendors is growing significantly. Quite often companies are not doing any follow-ups with vendors at all, they don’t know their key service or their parameters.
In some process-driven corporations procurement does this job by having regular follow-ups and checks with vendors, in some cases also agreeing on improvements of provided services. But still, it is usually no-value-event as the consequence of functional division of responsibilities of vendors (procurement unit), services (business and marketing units) and supporting components (IT unit). The value resides in intersection of these units.
Despite the separation, this model works somehow, if you have just few strategic vendors and some smaller ones around. But it is hard to manage it the same way, if you now have a huge list of cloud services scattered all over the world and combined with your internal service deliveries.
Even worse situation occurs in low-enterprise and SMB companies, as they usually don’t have any vendor procedures in place, not having procurement unit, or even the map of their services.
Our goal is to provide a governance platform for all types of companies. You don’t need to have army of procurement people to manage. You can just follow-up the strategic vendors, but know about the rest and agree at least on some virtual video meeting or email contact.
Business benefits for the governance scenario:
- Platform for governance for all types of companies.
- Regular evaluation of the provided service quality with your key vendors.
- Different governance and frequency for different types of vendors.
- Continuous improvement as part of your daily operations due to agreed actions and improvements.
- Pre-generated governance based on vendor criticality.
- Task list of actions for each vendor.
- Actions calendar.
- Service improvement plans with agreed improvements.
If you would like to know more about the trends in multi-vendor service environment, you can download our free white paper. It also uncovers the root causes of common problems in managing IT services and provides recommendations.