Why Read This
The power of sourcing and vendor management (SVM) groups will grow as the focus on cost control continues throughout 2010. In 2009, SVM teams gained credibility with their executives by driving down costs through aggressive supplier consolidation and gaining discounts. But in 2010 the hard work will begin — the low-hanging fruit has been picked, and now SVM teams need a deeper level of stakeholder engagement in new sourcing decisions. Persuading stakeholders to open up their business and IT road maps earlier on means that the SVM teams have to be better partners to the business. This partnering could involve more nuanced vendor evaluations, stronger negotiations, and more strategic risk management assessments. SVM teams should set up regular check-ins with key stakeholders and create success stories and "what if" scenarios that demonstrate how coordinated action can lower costs and bring innovation into the organization.