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.