An important and necessary aspect of a successful vendor management program is the integrated accountability clause in the process of business decision making. When making a decision concerning contract management it must be taken into account either on a centralized setup of a specific corporate task or decentralized in specific business units. Management will have to require business units to come up with their respective justification documents that are complete and comprehensive in order to force department heads to think through and assess their respective requirements.

When going through the decision process, flexibility is really important and need to consider the complex details of the project and the variables that affect that, project risks and overall project cost. The following is a list of critical concerns that must be taken into account when making final decision and selection. Without the heads of the department involved in this process, there is no possible way it will be successful: they need to be involved and given authority in the request and selection of new providers.

1. Detailed description of the reason for the request for a new external provider. Including the challenges that justify the hiring of an independent service provider.

2. Clear identification of the product or service that is required by the business unit and description of how this product will be the solution to the challenges].

3. Description of the needs to be done by an outside party.

6. Indication whether an RFP will be required to meet bank standards.

When reviewing and evaluating an application to provide the requested service by a third party provider, you must consider these concerns listed below before a final recommendation and decision is made by the concerned department head:

1. Comprehensive description of the entire range of products or services provided by the external provider.

2. Report and evaluation of past service arrangements by the concerned provider with the company.

3. Summary report on current and previous clients of the provider for the requested product or service.

4. A complete and detailed list of the provider’s contacts.

5. Result of technical capability assessment by the companies’ technical staff if there is one.

6. Description of any ongoing and pending lawsuits and/or litigations against the provider, if there are any.

7. Description of the process used to assess the practicality of the proposal of the provider.

8. Information on current and pending outsource arrangement by the provider with the company.

9. Approval and explanation of dedication by the provider for knowledge transfer.

10. Confirmation of unilateral revocation of business agreement for non-performance by the provider.

11. Review and affirmation by the legal department of the company of the potential decision.

As soon as the process of evaluation is completed, the relevant recommendation shall then be submitted by the proposing department head for the appropriate action by the top management of the business organization.