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Proper Management of IT Service Providers

by: Sarah Joson

Friday, April 19, 2013 | Outsourcing News |

Technology is one of the fastest evolving tools in businesses today. It is crucial to the decision-making process and construction of strategies for future operations. It is constantly evolving that some business leaders consider it as a problem as they’ve invested much of the company’s capital to technologies that drive little to no value to the company, or are only useful for a short period of time.

Meanwhile, major companies were seen hiring IT suppliers to keep their internal IT operations updated and become more economical. However, vendor management protocol should be regularly evaluated and changed so that new technologies can become more sustainable.

Manage IT service providers better

Business2Community.com shares five things that can help businesses manage their IT vendors better.

1. Study the trends that may affect your IT supplier’s market.
IT vendors can be easily swayed by the demands of their respective markets. For instance, when the cloud was introduced, they would have to be one of the first service providers offering cloud-related services to the market. Their pricing for other services will change; their packages will evolve as well. It would be better if you are updated or study this on your own.

2. Avoid pushing your vendor to the limit.
Business owners should know the limits of their vendors. This enables them to make correct judgment calls should they want to expand or acquire new IT infrastructure.  If IT leaders proceed with plans without checking the background of their providers, it could lead to loss in funds and time.

3. Business executives should always put their foot down.
Operations that use major IT providers often have conflict of ideas. A feasible customer and vendor relationship does not happen overnight. Both parties have to collaborate and business executives should still be able to plot new strategies without being shot down by the vendor.

4. Be more stringent.
When managing IT providers, little mistakes are often pushed aside and when a major error is done, clients do not know how to deal with it. Buyers should review the contract and seek legal action when necessary, or better yet, create a contract that covers all aspects of the operations, even errors, so that when an error actually happens, it will be easy for executives to draw up a solution.

5. Prepare for the end of contract.

Even before starting the operation, clients should have a clear view of what’s going to happen when the contract with a certain provider ends.  This alleviates additional financial woes and transition problems.

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