Vendor governance framework (VGF): Evaluate maturity to manage growth and risks
Conclusion: Identifying weaknesses in vendor management will be more effective for organisations that continuously examine their processes and manage vendor performance through an optimised vendor governance framework (VGF). An effective VGF must contain overarching guidelines which are applicable for all ICT vendor categories. Examples could include delivering increased value, promoting and providing cost reductions and recommending improvement to service levels. Mature organisations plan for vendors to provide value-added solutions and/or costs reductions in the range of 10 %+ p. a.1
To ensure the VGF continues to be relevant, organisations must firstly consider their latest ICT strategy then complete gap analysis of current vendors needed to deliver the strategy. The framework needs to be flexible to meet the changing dynamics of an organisation’s various operations whilst avoiding the vendor supply chain adversely impacting service delivery.
IBRS advises assessing and developing an organisation’s vendor governance framework using the IBRS Vendor Governance Maturity Model.
About The Advisor
Mark Unwin is an IBRS advisor specialising in the areas of commercial contract negotiation and vendor management. Mark has a career spanning 25 years across Government, Defence, ICT, Telecommunications and Infrastructure, and in this time has developed innovative solutions to transition and transformation ICT contracts, including project management, effective negotiation and relationship management. Mark is adept at aligning ICT service providers using the ITIL service delivery model in particular encompassing service desk implementation, asset management, unified communications and collaboration, end-user computing, ERP systems design and implementation, and software deployment and licensing. Mark has negotiated software audits and licensing agreements for Microsoft, Adobe, Veritas, SAP and Oracle. Mark is CPA qualified and has supported CIOs and CFOs to justify ICT investment programs throughout his career.