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Vendor Relationship Management

Unlocking value from your outsourcing vendors

Vendor management (VM) has become an integral part of the IT organisation. It is becoming more important than ever for clients to consider how they extract maximum value from outsourcing arrangement, particularly in the context of multi-sourcing environments.

Outsourcing provides opportunities to leverage external expertise and scale to provide quality services at reduced cost enabling internal resources to be more focused on organisation specific activities, appropriate to their knowledge and skill. However,without effective Vendor Relationship Management, organisations are at risk of services not delivering what the business requiresand at a premium cost to the business.


Aims & Objectives
Vendor Relationship Management is the discipline of managing vendors to extract maximum possible value from a contractual arrangement through governance and relationship building. The proactive management of ongoing commercial relationships ensures

  • that any technical or contractual loopholes are closed and that commercial conversations are escalated to the appropriate level to
  • ensure prompt resolution of issues. Vender Management focuses on the transition, transform and optimise phase of the Deloitte sourcing methodology:


Industry Trends
Today Outsourcing deals are entering 3rd and 4th generation, with more demanding clients and vendors bringing more sophisticated services and offers. Companies are further seeking to set up complex multi-sourcing models across a number of service providers, leading to an awareness for:

  • Moving into emerging activities of Vendor Management such as multivendor integration and vendor risk management
  • Developing service provider relationships as an essential and mandatory investment leading to a strong partnership
  • Moving client skills and processes towards managing vendors on operational, managerial and strategic levels, rather than focusing on execution
  • Keeping the contract alive by managing it on a daily basis rather than monitoring it & periodically amending it


How can we help you?
Deloitte has built up a vendor management optimization approach, supported by strong capabilities, tools and methods to assist clients ensuring the optimal vendor management environment is established to sustain complex IT sourcing arrangements. Based on our proven methodology we can design, build and implement an effective vendor management organisation. 

With its cross functionalexpertise, Deloitte can develop and improve the various key areas of vendor management such as contract management, commercial management, governance, vendor integration, risk management, and other functions of VM.

Please read more in the attached document which you will find in the download function at the top of this page.

Vendor Relationship Management

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