INFORMATION TECHNOLOGY

Information Technology

INFORMATION TECHNOLOGY Information Technology Vendor management program offices (VMPOs) become an essential need for any company that uses outsourcing services. According to the survey conducted by Deloitte (2011), There is a growing awareness among companies that in order to realize the benefits of outsourcing, service provider relationships have to be actively managed. Sixty-seven percent of respondents to the current survey reported that they had already established dedicated VMPOs. Even though companies are focusing primarily on traditional VM functions (the majority of respondents to this survey cited activities related to contract management and service performance management as most important), many companies are

showing an increased interest in adopting a broad approach to VM. This was evident from the fact that most of the responding companies have adopted practices that incorporate, in some fashion, Deloittes approach to 10 leading-practice VM functions. Despite adopting dedicated VMPOs that focus on broad VM functions, the rate of effectiveness for VMPOs was significantly lower than our experience working with clients would suggest: Only 57 percent of the respondents rated their VMPOs as very effective to effective. Considering the information above, it can be concluded that VMPO differs from PMO in the area of specialization. VMPO focuses on vendor management; it is some sort of client management system for the company working with outsourcers, while PMO is more focuses on the control and implementation of the project of different kind, in general meaning. Therefore, VMPO should be the part of PMO in order to provide companies with more efficient tools of interaction with outsourcing services vendors. Such approach would allow create the necessary background for the further development of outsourcing programs for any company. This, in turn, can free companys resources to focus on the primary directions of business development and improvement.

INFORMATION TECHNOLOGY References Deloitte (2011). The Outsourcing Vendor Management Program Office (VMPO): Art, science, and the power of perseverance, pp. 1-36.