Don't Ignore the Value of Key Vendor Risk Analysis

Author(s): John Stehman

Some IT service strategies could already be based on outdated vendor information or unwarranted reliance on past performance. IT managers should scrutinize key vendors to ensure their financial viability, capability to provide the requisite products and services, and performance are acceptable. To begin this process, review the following items with key vendors and suppliers:

  • The vendor’s current financial position.
  • Existing vendor contract terms and performance.
  • The vendor’s support organization.
  • Products and services updates.

Small IT groups must take appropriate actions to verify their needs and service strategies are aligned with key vendor commitments and performance capabilities. Otherwise, the quality of service which IT provides to their business units could be jeopardized.