Vendor Relationship Management (VRM) (Bridging the gap between client and subcontractor) In any outsourcing project the gap between client and subcontractor should be minimum to build healthy and long-term relationship. This gap is mainly responsible for the success or failure of the project and also to build common consensus in the two parties.
Six different dimensions of the relationship are:
- Coordination/control systems
- Objectives and values
- Capabilities
- Processes
- Information
- Technology
Coordination/control systems:
Client and developer use the same management coordination and control systems; for example, having the same systems for staff monitoring and appraisal.
Objectives and values:
Client and developer share the same objectives for their relationship and bring the same values to that relationship; for example, having the same organisational culture.
Capabilities:
This dimension is slightly different. One purpose of outsourcing is for the developer to provide human capabilities the client lacks. Congruence here therefore means that the developer’s capabilities profile matches the requirements of the client; for example that, if the client needs ten Java programmers, the developer provides them.
Processes:
Client and developer use the same work processes; for example, using the same software development methodology.
Information:
Client and developer have access to the same information; for example, information relating to project requirements and timescales.
Technology:
Client and developer use the same technology; for example, the same software and hardware platforms for development work.
