Streamline Your Approach to IT Vendor Management – SPONSOR CONTENT FROM INSIGHT
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For years, sourcing, procurement, and vendor management (SPVM) professionals have been tasked with a pretty difficult job: keeping information technology (IT) budgets as low as possible to make room for innovation. Now the events of 2020 have required fast-tracking many digital transformation projects, throwing those budgets into even more turmoil.

The good news is that SPVM professionals are in a position to trim costs by examining their vendor portfolio.

On average, organizations are using more than 10 vendors for a single project in addition to managing hundreds of vendor relationships across the business.

How can SPVM professionals possibly manage this type of sprawl efficiently? These individuals are all too familiar with the tedious coordination required to purchase from various, unrelated fulfillment operations. On top of that, they’re dealing with multiple software licensing contracts, rogue employee spending, and security gaps. Efforts to solve these challenges usually lead to a growing landscape of one-off solutions that only make matters worse.

So what’s the answer?

It’s not just a matter of using fewer vendors. This calls for strategic consolidation initiatives. It’s about moving your operations to a smaller group of partners that can integrate systems and provide better visibility into your IT ecosystem as a whole.

At Insight, we’ve seen firsthand the power of strategic consolidation. This real-world story illustrates just how beneficial consolidation can be. One of our clients is an agency in the U.S. federal government that was using several vendors just to procure software. This meant that the agency’s IT team was spending an exorbitant amount of time soliciting quotes, vetting vendors, negotiating licensing contracts, and handling software renewals. All this time spent managing vendors was time not being spent on more impactful work.

We were actually one such vendor that this agency had purchased from over the years, but it hadn’t leveraged our more holistic IT capabilities. Once it decided to tackle its unwieldly procurement process, the client reached out to see if we had the ability to streamline it, which we did. As a result, the agency moved fulfillment processes so they ran through Insight, creating more of a one-stop shop. It also offloaded management of its software assets’ life cycles to Insight specialists, which helped free up their internal teammates.

This is a perfect example of successful consolidation. The agency saw the need to cut down on disparate purchasing solutions and turned to an existing vendor that had the capability to help. Now it has a far more unified (and easier-to-manage) IT environment, it’s strengthened its relationship with a top IT services company, and it’s poised to take on future transformation projects.

The big question is how do you decide who stays and who goes?

Start with defining what the business’s goals are for its IT. Ask yourself:

  • What are your current pain points?
  • What transformation projects are currently underway? Which are on the horizon?
  • What are the short- and long-term plans for your IT infrastructure?

Once you have the answers to these questions, look at who can help you achieve these goals — and who can’t.

There are IT partners out there that have the capabilities and know-how to make those goals a reality. These vendors will look at your entire ecosystem and focus on integrating systems, trimming waste, and identifying areas that are ripe for innovation.

Instead of bringing in another vendor with another tool, partner with a solutions provider that will take the time to understand your unique situation and business drivers and then thoughtfully design solutions just for you.

It’s not about dropping vendors for the sake of having fewer to deal with. It’s about moving your business to partners that can be more impactful at a holistic level.

When your business has a strategically consolidated vendor environment, you’ll notice incredible benefits, such as greater purchasing power, stronger vendor relationships, streamlined processes, and a boost in innovation potential. IT vendor consolidation can really help you thrive in 2020 and beyond.

To learn more click HERE.

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