Software Vendor Management Provides Cost Savings
Software Vendor Management provides cost visibility into your vendor community pricing structure for your advantage. Vendor cost transparency is crucial so that financial authorities and technical leadership can collaborate on negotiating the best terms for software development services.
Software vendors overprice for self-protection due to poor internal estimation practices and/or intentional inflation. Buyers often overpay because they don’t have the data to leverage more reasonable pricing. Our vendor analytics provide the opportunity for negotiated savings.
Vendor Management will increase your delivery assurance and improve your ability to allocate resources and manage projects, while also providing insight into vendor pricing. Other benefits include:
- Zero dollar risk.
- This is a self-funded model. No new budget dollars are required.
- You are guaranteed to save more than you spend.
- We do the work upfront – you keep the 5% to 15% savings.
Common Software Vendor Management Use Case Scenarios
Usage of Vendor Management is seen often in these use cases:
- Mandated Cost Reductions – Organizations are mandated to reduce costs but have not quantitative methodology to achieve it. This process provides a framework for a credible, defensible cost savings program.
- Outsourcing Software Maintenance – Organizations find economic benefit in outsourcing maintenance of legacy application to third parties. Prior to the transfer, a baseline of cost and engineering performance can establish a negotiating starting point for both parties to understand their mutual responsibilities.
- Manage outsource vendor delivery – Clients outsourcing millions of dollars of software development to vendor partners in exchange for enhancements to existing systems or custom development of new features and functions in existing systems or new systems. Defining and maintaining value centric economic metrics for the cost of unit of work establishes as a currency of exchange. Clients receive quantifiable value for the price paid to vendors.
- Trusted Advisor Report - This report focuses on two key areas of vendor management.
- Case Study -This case study examines DCG's role in an outcome-based outsourcing arrangement, validating the vendor's function point counts.
- Article - A discussion on how to best manage your vendor relationships in a changing outsourcing landscape.
The Insights section of our website features additional reference materials. Visit it to find more information on this topic.
Consulting Services: (How it Works)
- We establish a price baseline using your historical projects.
- We work with you to negotiate new pricing structures with your vendors, based on the baseline.
- We guarantee that your vendor-related savings will be more than you spend on our services – or we will refund the difference.
Our Vendor Management Planning services are designed as standard, packaged offerings developed from working with clients across various industries. These services are proven effective, but may not fully meet your specific needs. Therefore we offer customized services based on the fundamentals of Software Vendor Management and welcome discussion on your particular circumstances.