How do you get the most out of your IT vendor services?

1 Define your goals and needs

Before you engage with any IT vendor, you need to have a clear vision of what you want to achieve and how you will measure success. This means defining your business objectives, technical specifications, budget, timeline, and quality standards. You also need to identify your key stakeholders, their roles and responsibilities, and their communication preferences. Having a well-defined scope of work and a detailed contract will help you avoid misunderstandings, disputes, and scope creep later on.

2 Choose the right vendor

Not all IT vendors are created equal. You need to do your due diligence and research the vendor's reputation, experience, portfolio, and references. You also need to assess their capabilities, resources, and compatibility with your organization's culture and values. Look for vendors that have expertise in your industry, understand your needs and expectations, and offer flexible and scalable solutions. You can use various criteria and tools to evaluate and compare different vendors, such as RFPs, scorecards, or demos.

3 Establish trust and communication

One of the most important aspects of IT vendor management is building a strong and trusting relationship with your vendor. This means communicating regularly, openly, and honestly, and providing constructive feedback and recognition. You also need to respect your vendor's time, expertise, and autonomy, and avoid micromanaging or interfering with their work. You can use various channels and methods to communicate with your vendor, such as emails, calls, meetings, or reports. You should also have a clear escalation process and a contingency plan in case of issues or emergencies.

4 Monitor and manage performance

Another key aspect of IT vendor management is tracking and evaluating your vendor's performance and deliverables. This means setting clear and realistic KPIs and SLAs, and measuring them against your goals and expectations. You also need to conduct regular reviews and audits, and report on the progress, achievements, and challenges of your vendor. You should also have a feedback mechanism and a corrective action plan in case your vendor fails to meet your standards or requirements.

5 Collaborate and innovate

IT vendor management is not only about managing tasks and contracts, but also about creating value and opportunities for both parties. This means collaborating and innovating with your vendor, and leveraging their expertise, insights, and best practices. You can also explore new ways of working together, such as co-creating solutions, sharing risks and rewards, or adopting agile methodologies. By fostering a collaborative and innovative culture, you can enhance your vendor's engagement, loyalty, and performance.

6 Review and renew

The last tip for IT vendor management is to review and renew your vendor relationship periodically. This means assessing the outcomes, benefits, and challenges of your vendor services, and identifying areas for improvement or change. You also need to decide whether to continue, modify, or terminate your contract with your vendor, based on your current and future needs and goals. You should also solicit feedback from your vendor and your stakeholders, and acknowledge and celebrate your achievements and learnings.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?