Vendor Management Profile: Financial Services

According to a 2006 Forrester Business Data Services survey, the financial services (FS) sector is advanced in terms of its vendor management activities. The majority of FS organizations, 56%, have a centralized vendor management office, and most finance and insurance companies are savvy when it comes to contract negotiation and management. In fact, 88% of firms surveyed require their vendors to commit to business outcomes when signing contracts. Unfortunately, the survey also reveals a lack of focus on the centralized management of IT services vendors. This appears to be an area of improvement for finance and insurance companies — one that could have an important, and positive, impact on FS firms growing external IT services appetite.