Policy
IT Vendor Management Policy Template
Manage IT vendors effectively — from selection to performance review to termination.
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.
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