With inflation and economic uncertainty dominating the headlines, when do you ask yourself the important questions:
Why are we trying to do everything in-house, and when do we start looking outside to experts who are better suited to improve our bottom line.
Here are some key considerations your company should be looking for as you determine if an outsourced managed service solution will create value for your company:
Does outsourcing align with our internal resource needs?
As you evaluate your internal staffing, resource roadmap, and internal processes, does a managed services solution allow you to unburden your staff so they can handle other business-critical activities? Will a fully managed solution deliver the improvements better than we can internally?
Are their experts better than ours?
You need to ensure the VMS provider is designed and resourced by a team of subject matter experts that are focused on cost reduction and have the appropriate industry expertise to provide you with the required improvements to your organization.
Is our process proven to provide results?
Do you have a cost reduction strategy? A proven process that begins with assessing the current state of your vendor agreements and contracts, resulting in demonstrated savings should be a prerequisite.
Scalable and Reliable Service Level Performance
Can the provider meet your unexpected demands (higher number of new vendor diligence than you anticipated) and align with your growth plans to scale with your accordingly?
Are You Ready for Outsourcing?
If you are unclear if outsourcing makes sense for you, consider the following as objectives that outsourcing some or all of your Vendor Management Program is something you should be considering:
- Lowering Costs
- Streamlining Operations
- Implementing Best Practices
In the end, outsourcing your Vendor Management function can make sense on many fronts. It can send a message to your staff, executives, board members, and investors that your take seriously the responsibilities to mitigate third-party risk, optimize your operating costs, ensure regulatory compliance and strive for excellence.