Business Case Report

Build SVM's Business Case On ROI

July 31st, 2013
MG
Mark Grannan
LP
Lutz Peichert
With contributors:
Christopher Andrews , Jon Erickson , Christine Ferrusi Ross , Fraser Tibbetts , Ben Jennings

Summary

Sourcing and vendor management (SVM) professionals who are not operating under unified processes, governance, tools, and even goals will fail to deliver the maximum value to the business. Yet most SVM practices struggle to show value beyond cost-cutting. Given this barrier to success, SVM executives need to present a thorough business case to justify greater investment in their SVM practice. Forrester's business case for SVM is built on a return on investment (ROI) foundation — specifically Forrester's Total Economic Impact™ (TEI) methodology — to ensure that SVM's counterparts in IT and the business can visualize the full spectrum of benefits, costs, risks, and flexibility that a centralized SVM practice involves.

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