Managing Vendor Program Reduces IT Staffing Costs

Client

An international food provider with over 1,600 retail stores in the U.S. This client was spending approximately $12 million on IT contractor resources annually.

Challenge

Several critical issues caused the client to seek the services of a managing vendor program (MVP):

  • Lack of current information on contractor base
  • Uncontrolled spending on IT contractors—inability to monitor and verify competitive bill rates
  • Inconsistent and ineffective procedures for obtaining and managing quality IT contractors

Solution

MDI was engaged to improve the quality of the client’s IT staffing services and to reduce the costs associated with them. The core of the MVP solution was the integration of IT staffing services into a vendor-neutral program. MDI offered the following services:

  • Standardizing procedures to manage IT contractor requisition and engagement
  • Implementing an online vendor management tool
  • Creating a consolidated monthly invoice for all IT contractors
  • Managing ongoing relationships with all vendors
  • Enforcing standard client contract terms, including pricing levels
  • Delivering monthly and ad hoc reports on vendor performance

Results

Through its vendor-funded MVP solution, MDI significantly reduced the client’s IT staffing costs. By identifying process improvements and enforcing bill rate validation and reduction, MDI saved the client approximately $900,000 on annual IT staffing expenses.