Definition

vendor management office (VMO)

A vendor management office (VMO) is an internal unit within an enterprise that is charged with evaluating third-party providers of goods and services, supervising day-to-day interactions and managing longer-term relationships.

In some cases, an IT vendor management office is established to create and monitor vendor relationships with regard to IT, including establishing the organization’s proper mix of IT outsourcing and insourcing opportunities and setting vendor risk management policies.

Vendor management typically involves numerous oversight duties for a CIO or IT executive, including negotiating and then monitoring the length and substance of contracts; keeping tabs on new technologies; maintaining contact with current vendors and reaching out to vendors with which the organization has not yet worked.

For those organizations not prepared to leap into a full-scale VMO, it's also possible to establish an IT governance or standards body of employees from across the company to oversee purchasing policies and assess new vendor technologies and other offerings.

When assembling either a VMO or a standards body, it's vital to have broad representation from procurement, legal services, IT and business units. It can help to involve individuals who have backgrounds in project management as they are often more comfortable in supervisory roles. It’s also important to include people who have a far-reaching view of the organization and who, above all else, understand the importance of good relationships with vendors.

Contributor(s): Rachel Lebeaux
This was last updated in September 2011
Posted by: Margaret Rouse

Email Alerts

Register now to receive SearchCIO.com-related news, tips and more, delivered to your inbox.
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

More News and Tutorials

Do you have something to add to this definition? Let us know.

Send your comments to techterms@whatis.com

There are Comments. Add yours.

 
TIP: Want to include a code block in your comment? Use <pre> or <code> tags around the desired text. Ex: <code>insert code</code>

REGISTER or login:

Forgot Password?
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy
Sort by: OldestNewest

Forgot Password?

No problem! Submit your e-mail address below. We'll send you an email containing your password.

Your password has been sent to: