SOURCE: ITM Software

January 29, 2008 07:00 ET

Enhanced ITM Business Suite Module Optimizes Vendor Management for Financial Services Industry

New Portfolio Approach, Integrated Risk & Financial Analysis Enables Banks to Streamline Compliance Efforts and Save Millions Annually on Vendor Spending

SANTA CLARA, CA--(Marketwire - January 29, 2008) - ITM Software, the leading provider of IT business management solutions, today unveiled the next generation of its Vendor Relationship Management (VRM) module for the ITM Business Suite. ITM VRM 3.6 was developed through extensive work with some of the world's top financial institutions, where vendor management operations are under increasing regulatory scrutiny. By incorporating industry-specific business processes and templates, this release optimizes the vendor management process for the financial services industry.

Vendor Management is an enterprise-wide function. VRM 3.6 is designed for vendor management across the entire organization, making it possible for banks and financial services institutions to reduce their vendor spend and cost effectively address vendor compliance requirements. IT represents the greatest area for savings with ITM financial clients reporting spend reductions of as much as 10 percent. With most IT organizations spending nearly half of their annual IT budget on vendors, this equates to millions of dollars in savings.

For example, one large bank in Northern California saw savings of $350K in less than six months by using the ITM VRM solution to implement an IT vendor management program. Much of this savings was accomplished because they gained solid information needed to rationalize and consolidate vendors and contracts. Within the first two months, the bank finally had an integrated system for easily seeing all contract expiration schedules and were able to proactively evaluate each contract well ahead of due dates in order to maximize contract renewal decisions.

According to a recent study of banks and financial institutions by independent research firm, The FactPoint Group, increasing compliance regulations such as the Gramm-Leach-Bliley Act (GLBA), or the Federal Financial Institutions Examination Council (FFIEC) are driving banks to establish a clear and consistent mechanism for continually evaluating and proactively managing strategic and risky vendors, while forcing banks to build a unified view of their vendors. The study reports that banks are taking an enterprise-wide approach to vendor management, while recognizing that IT vendor management is more complex than the management of non-IT vendors. In fact, 70 percent of participants believe that management of IT vendors is more complex than management of non-IT vendors. With this in mind, banks require a tool that addresses this complexity.

With today's announcement, ITM has introduced several capabilities designed to enhance and streamline their vendor management efforts, including a new portfolio focus, expanded financial analytics, and out of the box industry-specific vendor lifecycle and governance templates. These capabilities are delivered in a single solution that fully integrates with the ITM Business Suite for a complete IT management solution. With the ITM solution, banks now have the tools to reduce vendor risk and support compliance initiatives, while optimizing vendor value.

"Today's regulatory environment, coupled with an increasing reliance on third-party products and services, is forcing financial institutions to seek complete visibility into relationships with strategic product vendors and service providers," said Hank Leingang, chief executive officer of ITM Software. "The importance of vendor management has been elevated from a departmental process to a top priority within banks and financial institutions."

About ITM VRM 3.6

ITM VRM is uniquely suited to the needs of Vendor Management Offices (VMO) within banks and financial institutions. Version 3.6 offers these important enhancements: extensive support for vendor compliance activities, more extensive, full support for the vendor process lifecycle and analytics and a portfolio approach to vendor management.

--  Streamlined Vendor Governance and Compliance - VRM 3.6 goes beyond
    simply supporting compliance analysis and reporting requirements by helping
    vendor managers establish vendor management compliance processes designed
    to ensure vendors are providing the highest value at the lowest risk. New
    categorization and analysis functionality enables vendor managers to
    quickly assess vendors and to manage those vendors across a broad spectrum
    of categories, such as strategic value to the company, risk, certification
    requirements (such as SAS-70) or a vendor's level of access to sensitive or
    proprietary information.  Automated, out-of-the-box compliance assessment
    and reporting capabilities provide significant efficiencies in meeting
    compliance reporting requirements such as FFIEC, GLBA, and the Fair Credit
    Reporting Act.
    
--  Lifecycle IT Vendor Management - Only ITM provides integrated support
    for defining and tracking standardized governance processes for every
    aspect of how banks and financial institutions manage vendors from cradle-
    to-grave. Easy-to-define templates enable the VMO to ensure consistency
    across lifecycle processes such as RFP issuance and vendor selection, on-
    boarding, "get well" activities, performance management and even vendor
    retirement. Clearly defined, consistent processes greatly reduce risk and
    make it possible to efficiently ensure compliance with various vendor
    management requirements, even complex IT requirements.
    
--  Portfolio Approach - VRM gives organizations a way to categorize,
    analyze and manage vendors, consultants and suppliers as a group, as well
    as individually. By grouping and analyzing sets of vendors commonly used by
    financial institutions, vendor managers can more easily control the total
    number of vendors and implement appropriate management processes based on
    the type and nature of each vendor and risk. The VMO can then devote the
    majority of their energy and attention to the key vendors, while ensuring
    that "commodity" suppliers receive appropriate attention.
    
--  Enhanced Vendor Analytics - VRM's out-of-the-box dashboard analytics
    and report templates provide important insight into the business impact,
    financial spend and governance status of single vendors or portfolios of
    vendors. Enhanced financial analysis enables organizations to see where
    vendor spend is over budget or unexpectedly low--both indicators of
    problems. In-line calendars provide individual users and Vendor Management
    Officers with summaries of critical milestones, such as approaching
    contract renewal dates or risk assessments. A library of industry specific
    report templates includes a broad set of analytics, including analytics
    specific to IT, such as asset license allocation and usage information,
    contract details and detailed vendor impact reports.
    

About ITM Software

ITM Software provides CIOs and IT organizations with software products and services that advance the business management of Information Technology. The ITM Business Suite delivers the visibility and control required to make fact-based decisions regarding IT finance, vendors, people, assets, projects, and compliance. Comprised of former CIOs and IT leaders, the ITM team provides best practice expertise in IT Business Management, enabling clients to drive down costs, better align IT with business objectives, and deliver more business value. Founded in 2001, the company serves IT organizations within Fortune 2000 corporations, government agencies, and universities. ITM Software is privately held and is headquartered in Santa Clara, California. For more information, visit www.itm-software.com.

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