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IT Vendor Consolidation – Sourcing More with Less

 

Vikramjit Grewal

Director Strategic Solutions, TCS

L.C. Manoj

Solutions Architect, Strategic Solutions, TCS

Drive lean and agile operations with an optimized IT vendor ecosystem.

Being resilient and adaptable are key to managing the fallout of the COVID-19 crisis. As organizations adopt remote ways of working and strengthen their business continuity plans to meet immediate business requirements, they are re-examining their vendor landscape. This crisis has highlighted the perils of dealing with too many small vendors – mainly higher costs, increased exposure to risk and a slower pace of digital adoption. Organizations are now looking to re-imagine their relationship with sourcing vendors to drive digital transformation. There are three areas of improvement that organizations are looking at:

• Rapid cost takeout

• Pandemic-proof resilience

• Accelerated digital transformation

Rationalizing and consolidating multitude of vendors, however, is a complex task. It involves managing a smooth transfer of knowledge, calibrating the speed of transition and change management. A phased approach is key to realizing the benefits of vendor consolidation.