Many organizations with VMOs have been able to generate impressive cost savings by standardizing their IT procurement efforts. There is an increased focus on managing relationships and have a strategic alignment with identified services and solutions partners by performing vendor stratification.
While setting up VMO a clear alignment with IT mission and business plans is essential. Some of key factors when setting up VMO are:
1.Establish scope of VMO – Is VMO measuring success of an large outsourcing engagement, or you are monitoring multiple vendors
2. Define the processes and entities that will be involved with VMO
3. Get buy in from the business
4. Clearly demarcate roles and responsibilities and set up governance structure
5. Define the metrics to measure success of VMO
6. Develop tools and templates
7. Training and implementation
8. Dashboard for status update
9. Continual refinement of metrics
Usually it takes any where between 2-4 months to establish a VMO (Vendor Management Office) from scratch.
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