Work with your suppliers to reduce sourcing spending

March 11, 2009 Published by  SearchCIO.com IT/Business Strategies Cost reduction tips for your strategic sourcing contracts Vince Pultorak, Contributor The current economic crisis provides a lever for CIOs to get the most out of their strategic sourcing contracts by analyzing current spending and contract terms, establishing a cost reduction program and using suppliers as an extension of IT to achieve cost reduction goals. In addition to improving contract terms and reducing sourcing costs, the following strategies will help CIOs gain insight into how well the current supply base and contractual commitments support (or limit) IT's ability to deliver value to the business. Review your sourcing contract portfolio. The 80/20 rule typically applies to your contract portfolio, where 80% of your spending comes from a smaller number of significant contracts. Focus on these initially, as they provide the greatest opportunities for potential savings. For your major sourcing contracts, you should review these key contractual terms. FIND THE TERMS IN THE FULL TIP   ADVERTISEMENT   * FatWire's sex site demo backfires at Boston Web 2.0 conference Democracy via technology: Obama and the power of Web 2.0 iPhone: A tool for enterprise?   ABOUT THIS E-NEWSLETTER This e-newsletter is published by SearchCIO.com, part of the TechTarget network. TechTarget provides IT professionals with the resources they need to perform their jobs: Web sites, newsletters, forums, blogs, white papers, webcasts, events and more. Copyright 2009 TechTarget. All rights reserved. Designated trademarks and brands are the property of their respective owners. We're sending you this information based on the Topics you selected in your TechTarget Member Profile. To unsubscribe, click here. Unsubscribe requests may take up to 24 hours to process; you may receive additional mailings during that time. A confirmation e-mail will be sent when your request has been successfully processed. Please note, this will not affect any other subscriptions you have signed up for. Contact Us: SearchCIO.com Member Services 117 Kendrick Street, Suite 800 Needham, MA 02494 Contact: Webmaster@techtarget.com When you access content from this newsletter, your information may be shared with the sponsors or future sponsors of that content as described in our Privacy Policy: PRIV LINK