An August, 2008 Info-Tech Impact Research report found that proactive, ongoing vendor management is a successful cost reduction strategy. Many IT departments reported cost savings through activities like vendor renegotiation, replacement, and consolidation. Moreover, Info-Tech's research found that the top vendor candidates for major cost reduction provide telecommunications, applications, maintenance and support, hardware and printers to the organization.

This research note explains how the vendor management office (VMO) should deal with major vendors during critical moments in the management cycle.