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Conclusion: IT organisations revisiting their service contracts as a result of mergers and acquisitions should establish a federated vendor management arrangement. The rationale is to ensure central consistency while retaining local autonomy to address tactical matters. For example, the central consistency demands leveraging the economy of scale to reduce cost, whilst the local autonomy allows the extension of services scope to cover local requirements without the need to change the local vendor management arrangements. However, the local autonomy should be governed by verifiable policies.

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