SOURCE: ITM Software

March 03, 2008 07:00 ET

Survey Reveals IT Vendor Management Increasing in Importance and Scope as a Top Banking Initiative

An ITM Software-Commissioned Study Finds That Regulatory Compliance Is a Leading Driver for Vendor Management, With Risk and Cost Reduction as Additional Strategic Considerations

SANTA CLARA, CA--(Marketwire - March 3, 2008) - ITM Software, the leading provider of IT business management solutions, today announced that a new survey has found vendor management to be an enterprise-wide issue for banks, with regulatory compliance mandates as the most common driver among Chief Financial Officers and Chief Risk Officers. Other key drivers pushing vendor management to the top of the key strategy list include risk and reputation management, as well as reducing per-vendor costs while simultaneously increasing vendor value. The study, conducted by The FactPoint Group, is entitled "Vendor Management for Banks - Beyond Compliance" and is available for download free at ITM's website.

The primary research study provides a window into how banks measure the value of vendor management initiatives, and the role of vendor management in improving operational efficiency and effectiveness. While risk and compliance were found to be the most common drivers, vendor management efforts rapidly begin to realize cost savings for banks. Respondents revealed that institutions see a savings of anywhere from 10 to 30 percent as a result of more effective vendor management, which commonly enjoys C-level executive visibility. Also, almost two-thirds of respondents noted that IT vendor management is widely viewed as more complex and mission-critical to the organization than the management of non-IT vendors, therefore requiring more expertise than general vendor management software for contract management, purchasing and ERM.

Along with compliance, risk to corporate reputation is seen as the highest priority in managing vendor relationships, lest data security and privacy breaches threaten the institution's position. The study revealed that to these key benefits, the value proposition for a well-organized vendor management effort also includes: data integrity from a "single version of truth," vendor cost savings based on a view across all vendors, the ability to monitor vendor commitments, and the ability to gain competitive advantage in the market.

One respondent, a CIO at a top 10 global bank, categorized IT vendor management as one of the most significant requirements: "The FDIC is increasing its focus on third party vendor relationships. There is a need for better IT Vendor Management, better due diligence."

The ITM study focused on medium-sized national and regional banks with assets between $4 billion and $50 billion -- large enough to have complex supply chains, yet small enough that costs of compliance might be a burden. Fact Point conducted in-depth interviews with senior executives of 34 target banks during the fall of 2007.

ITM recently unveiled the next generation of its Vendor Relationship Management (VRM) module for the ITM Business Suite. ITM has enhanced VRM with a new vendor portfolio focus and has expanded analysis and support of the entire vendor lifecycle. VRM 3.6 makes it possible for companies to reduce their overall IT vendor spend as much as 10 percent by applying a portfolio-based approach, expanded analytics, and new workflow templates to track and manage the complete vendor lifecycle.

The FactPoint Group is a Silicon Valley-based research, and consulting firm specializing in research, analysis, and consulting for the technology sector.

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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