Integrating Vendor Management Organizations and Outsourcing Governance

It is somewhat surprising that there is still confusion regarding the respective roles, functionality, and relationship between Vendor Management Organizations (VMO) and outsourcing governance given how long both have been around. Unfortunately, the reasons why there is not better understanding and integration are often a combination of organizational politics and lack of sourcing maturity. HfS believes that VMOs and outsourcing governance groups should work closely together – and not just in Information Technology. In fact, it is our belief that integrating these two groups is critical to maximizing the value delivered by each business service function. This paper lays out a model and how this can be done.