The global IT services market holds substantial opportunities for industry players due to increasing IT spending in the retail, healthcare, and transportation sectors. The increasing global demand for systems, services, software, and rising IT spending by governments are likely to boost the IT services market. The industry is highly associated with economic cycles as IT services are project-based and often represent discretionary spending. Apart from the conventional factors, the growing need to push companies to outsource their IT requirements is also predicted to spur the growth prospects of the IT services providers.
Moreover, the relative growth in tech-savvy consumers in the IT sector is forcing technology companies to consider unconventional and innovative ways to enhance their growth opportunities. In this technology-driven space, leading organizations are relying on innovations in their product offerings to improve customer satisfaction and increase the overall profitability. Although the IT services space is witnessing incremental growth, owing to the presence of a considerable number of services providers, several factors may influence the growth of the IT services provider. Wth the average company spending between 4% and 6% of its revenue on IT, the need for proper supplier governance and control measures has become increasingly critical to the enterprise. Moreover, as the trend continues, many large enterprise organizations have increased dependencies on external suppliers. This is where vendor management best practices come into play. Organizations in the IT industry must leverage vendor management best practices to reduce cost and better corporate compliance.
A well-constructed, consolidated vendor management process can not only reduce risks but increase net profits, improve contract terms, reduce costs from audits, and encourage better performance from vendors. Get more info!
Vendor Management Best Practices Reduces Risk in IT Sector
About the Client
The client is an IT services provider based in Deerfield, a suburb of Chicago. The company has a workforce of around 12,000 employees.
The Business Challenge
The client, a renowned IT services provider, noticed that they spent half of their IT budget on suppliers, with no formal oversight. They realized that the lack of oversight can lead to increased costs, missed opportunities, and mounting frustration in their business. Therefore, they approached SpendEdge to leverage a vendor management process to maintain both the original value business proposition and identify further opportunities for supplier portfolio optimization. Also, by leveraging SpendEdge’s vendor management best practices, the IT services provider wanted to increase overall efficiencies in the form of improved security of confidential files.
Additionally, with SpendEdge’s vendor management best practices, the IT services provider was looking out to enhance requisitions, approvals, expense management, payment, and reporting. With a vendor management process in place, they needed to set up a smooth system for ensuring both parties – themselves and the vendors meet all requirements of a contract.
Following vendor management best practices allowed the managed IT services provider to access the potential supplier risk whether in terms of unforeseen cost implications or regulatory compliance. The vendor management best practices solution provided businesses with a clear view into the unpredictability of billing and vendor costs that can result in lost profits when not managed. SpendEdge’s vendor management best practices solution also allowed the IT services provider to gain access to vendor performance tracking, provided spend visibility, cost controls, cost reduction results, document management, process improvement, compliance tracking, and more.
The vendor management system subsequently helped the IT services company to develop the standard set of processes between departments to select, engage, manage, retain and disengage suppliers with as little disruption to the enterprise as possible while extracting the necessary value from suppliers.
Our vendor management process helps you to save resources, sustain systems and processes and secure customer information which will strengthen your customer relationships. Get in touch today!