Wall Street & Technology: Blog: IT Vendor Management More Important than Ever for Financial Firms by Wall Street & Technology

IT Vendor Management More Important than Ever for Financial Firms

A new survey has found that IT vendor management is becoming increasingly important for banks, who now consider it an enterprise-wide issue that can help significantly reduce costs, as well as reduce corporate reputation risk.

The survey revealed that financial institutions see a savings of 10-30 percent as a result of more effective IT vendor management.

Still, with financial firms facing the potentially hugely damaging threat of security breaches, respondents admitted that the key drivers for IT vendor management are compliance as well as reputational risk.

Meanwhile, almost two thirds of respondents said IT vendor management is viewed as more complex and mission-critical to the organization than the management of non-IT vendors.

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 CIO said.

The study, conducted by The FactPoint Group and ITM Software, focused on 34 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.

The survey can be downloaded free at ITM's web site.

Posted by Melanie Rodier at 10:29 AM

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