10. Vendor management function. Do you have a formal vendor management function? Today, 47% of companies have formal vendor management groups, and an additional 11% have plans to develop one. They vary substantially in composition and maturity from client to client, but there are certain responsibilities and roles that most vendor management organizational units share. Having a plan in place automatically gives you a leg up in terms of outsourcing maturity.
The Truth is -- Cheaper Labor is Only Part of the Story
Forrester believes that the value derived from outsourcing is not exclusively from cheaper labor or from an individual vendor's performance, but from improving and streamlining internal IT processes to discover the right engagement models and align with the appropriate providers. Once your weaknesses are understood, steps can be made to increase maturity levels and use outsourcing more effectively.
Stephanie Moore is a Vice President and Principal Analyst at Forrester Research, serving Sourcing & Vendor Management professionals.