ISG helped a major healthcare organization who did not have any formal vendor management processes set up a fully managed vendor management office using an as-a-service model.
A major healthcare company had entered into a large managed services contract for IT. After contracting, the major healthcare company was in need of a way to manage the relationship and the rest of its ecosystem. It previously had not established a vendor management organization.
Imagining IT Differently
ISG engaged the major healthcare organization to develop a strategy to manage the newly formed relationship and also took into account the rest of its ecosystem. ISG assessed its needs based on the organization, processes governance and tools that were needed to manage its relationships. ISG then developed a number of options for the company to consider to include a value proposition, business case and a recommendation to implement a mature vendor management office (VMO). ISG recommended and the company agreed to the proposed solution: a VMO as a Service engagement.
Future Made Possible
The company received the following benefits from the engagement; it:
- Saw no value erosion to the managed services from the IT services contract.
- Achieved a mature VMO in a matter of months with integrated automation and an efficient workflow.
- Received end-to-end vendor management processes and personnel.
- Obtained fully-managed deliverables and obligations, assuring contract compliance. The ISG-managed VMO also audited all invoices, identifying and validating discrepancies.
- Achieved validation of service levels compared to contractual service level agreements (SLAs) and the SLA reporting provided by the supplier.
- Obtained a process and expert advisors assisting with risk monitoring of suppliers, in which the company received news articles and advisory regarding financial, operational and legal risk.
- Received access to the ISG Executive Insights™ platform for data aggregation, dashboarding.