A majority of organizations are highly dependent on third-party vendors for services in order to save costs and raise the quality of service.
By relying on a third-party vendor, it also means that confidential data and information about an organization will be handled by a third party, which could lead to serious consequences.
In current organizations, various vendors are engaged to provide a variety of services; hence, it is imperative to have a sustainable and scalable vendor management framework that ensures best-in-class vendor management processes and vendor performance across various vendor services. Implementing a sustainable and scalable vendor management program ensures that all vendor-related risks are mitigated and vendor management processes are well defined as per industry-leading practices.
Putting a robust vendor management process in place will allow organizations to achieve the following benefits:
Established robust vendor management processes to ensure effective services from the vendors and mitigate risks related to vendor services, vendor availability, contractual breach, and service quality.
Clearly defined roles and responsibilities among vendor management stakeholders, which leads to effective decision-making.
Well-defined SLA and performance-monitoring mechanisms to ensure compliance to agreed contractual terms.
A well-defined risk management process to ensure proper risk profiling of the vendor and implementation of required risk mitigation.
Adherence to audit and compliance requirements by following all defined processes as per the vendor management framework.
EGS shall perform:
“As-Is” assessment and gap analysis against the existing framework.
Policies & procedures including defining the scope of the framework inclusions.
Roles & responsibilities, RACI matrix.
SOPs for lifecycle management activities for existing vendors and onboarding of new vendors.
Categorization criteria and categorized list of vendor repository based on criticality of vendor and access to 24*7 network/data.
Prepare Vendor Assessment checklist.
Compliance Metrics and reporting including the frequency of auditing, testing, and escalation mechanisms.
Vendor Selection Process and criteria
Vendor Assessment and Risk Management program including relevant checklists.