IT Vendor Management Policy Template

Purpose

This policy defines the process for selecting, onboarding, managing, and replacing IT vendors to ensure consistent service quality, compliance, and value for money.

Vendor Selection

• Evaluate at least 3 vendors for any significant purchase.
• Score on: price, quality, support, compliance, and references.
• Verify GSTIN, PAN, and business registration before selection.

Vendor Onboarding

• Sign NDA and Data Processing Agreement (DPA) if handling personal data.
• Define SLAs with response times, resolution times, and escalation procedures.
• Create vendor record in procurement system with all verified data.

Performance Tracking

• Monthly scorecards on: delivery, quality, support, and compliance.
• Quarterly business reviews with top 10 vendors.
• Annual re-assessment of all critical vendors.

Vendor Replacement

Consider replacement when: SLA breaches exceed 20% for 3 consecutive months, quality issues persist, pricing becomes uncompetitive, or compliance documentation is repeatedly incorrect.