An August, 2008 Info-Tech Impact Research report found that proactive, ongoing vendor management is a successful cost reduction strategy in many organizations. 74% of IT departments realize cost savings through activities like vendor renegotiation, replacement, and consolidation. A full 78% realize the savings they had originally predicted. However, vendor cost reductions take serious commitment. Info-Tech found that success in this area takes some time to realize. In fact, a third of organizations report that this is an ongoing activity.
This note defines the order and timing of vendor management activities in a vendor management office (VMO).