Vendor and Sourcing Management: The Leadership Imperative

Vendor and Sourcing Management: The Leadership Imperative

This IDC study provides guidance to enterprises interested in establishing or improving a formal and effective vendor and sourcing management office (VSMO) to manage the technology portfolio within the enterprise. The importance of the VSMO is no longer a debate — the VSMO is a requirement and a reality in the fast-growing, complex IT business landscape. This study investigates the practical aspects of establishing a VSMO by answering the following questions:

  • In what part of the enterprise should the VSMO reside?
  • What is the role of the VSMO leader, and what characteristics define an effective VSMO executive?
  • What role does talent play in the VSMO? What types of talent are essential?
  • What are the essential competencies required for a VSMO?

This study guides CPOs, CFOs, and CIOs to help them determine which organization within the enterprise, if any, is best suited to host the VSMO. Furthermore, this document will help the enterprise determine the organizational deficiencies that hinder the effective implementation of a VSMO.

"In deciding where to host the VSMO, enterprises must evaluate the strengths and weaknesses of their current organizations," says Aaron Polikaitis, vice president, IDC's IT Executive Programs (IEP) Vendor Sourcing and Management practice. "Hosting a VSMO within an organization that does not currently maintain the appropriate leadership and expertise will lead to ineffective management of enterprise technology portfolios. After a decision to host the VSMO within a particular organization is made, all organizations within the enterprise must embrace and assist the VSMO in its operation."

Please Note: Extended description available upon request.

IDC Opinion
In This Study
IT Executive Program Research Agenda
Situation Overview
Pitfalls of a Hybrid Management Model
"Out of Sight, Out of Mind" — No Longer the Case
Where Should the VSMO Reside?
Technology Selection
Financial Analysis
License Terms and Conditions
Negotiations, RFPs, and RFIs
Organizational Challenges Related to VSMO Leadership
Future Outlook
Essential Guidance
Learn More
Related Research
Figure: IT Executive Program Research Agenda Themes
Figure: The Vital Role of Leadership in an Effective VSMO

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