Align IT Sourcing, Vendor Management and Business Metrics to Maximize Value
“Traditionally, IT SPVM (Sourcing, Procurement and Vendor Management) leaders have focused on capturing savings and/or cost avoidance as their key value metrics. This leads stakeholders to have a limited view of the function’s business value and to undervalue SPVM capabilities.”1
According to Gartner’s IT Score for Sourcing and Procurement (S&P), only 17% of organizations track and report performance metrics beyond financials. Furthermore, only 19% track and report their contributions to business initiatives and objectives.2 If the IT Sourcing, Procurement, and Vendor Management (IT SPVM) function wants to be considered a critical partner in the business, it must be able to track and communicate value via metrics that stakeholders care about.
But how can IT SPVM leaders do this?
This report details how SPVM leaders can invest the necessary time and resources to understand the organization’s different business strategies and priorities. To truly provide value to stakeholders and be seen as an essential business partner, these objectives must be aligned.
This Gartner report explores:
- IT Sourcing, Procurement, and Vendor Management metric creation guidelines
- How to determine business-aligned metric categories and define specific metrics
- Best practices for educating stakeholders, and reporting and enhancing metrics
- And more
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1Source: Gartner, Align IT Sourcing, Vendor Management and Business Metrics to Maximize Value, Dawn Singer, Yanni Karalis, 5 January 2024
2Source: Gartner IT Score for Sourcing & Procurement
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What you’ll learn from this report.
This complimentary Gartner report outlines five stages of requirement developments necessary to realize optimization and governance outcomes from SAM and FinOps managed service providers.
- Develop the Mandate to Utilize a Service Provider. Engage internal stakeholders and establish critical success factors in this stage.
- Convert the Mandate into Statements of Scope. This is where you establish a clear scope of requirements and define the parameters for SAM and FinOps services.
- Evaluate, Validate, and Select Managed Service Providers. Here you create your shortlist and evaluate references to identify valid providers.
- In this stage, Gartner® recommends that you pursue proposals aligned with your service mandate and run a proof of concept in dynamic sourcing scenarios.
- Negotiate an Aligned SOW with Minimal Exclusions. Structuring an SOW that meets your requirements and agreeing to terms are vital steps in this final stage.