Manage Third-Party Services

The need to assure that services provided by third parties (suppliers, vendors and partners) meet business requirements requires an effective third-party management process. This process is accomplished by clearly defining the roles, responsibilities and expectations in third-party agreements as well as reviewing and monitoring such agreements for effectiveness and compliance. Effective management of third-party services minimizes the business risk associated with non-performing suppliers.

Identification of All Supplier Relationships

Identify all supplier services, and categorize them according to supplier type, significance and criticality. Maintain formal documentation of technical and organizational relationships covering the roles and responsibilities, goals, expected deliverables, and credentials of representatives of these suppliers.

There are no PSGs published for this topic; however, the topic is under review for future PSGs

Supplier Relationship Management

Formalize the supplier relationship management process for each supplier. The relationship owners should liaise on customer and supplier issues and ensure the quality of the relationship based on trust and transparency (e.g., through SLAs).

There are no PSGs published for this topic; however, the topic is under review for future PSGs

Supplier Risk Management

Identify and mitigate risks relating to suppliers’ ability to continue effective service delivery in a secure and efficient manner on a continual basis. Ensure that contracts conform to universal business standards in accordance with legal and regulatory requirements. Risk management should further consider non-disclosure agreements (NDAs), escrow contracts, continued supplier viability, conformance with security requirements, alternative suppliers, penalties and rewards, etc.

There are no PSGs published for this topic; however, the topic is under review for future PSGs

Supplier Performance Monitoring

Establish a process to monitor service delivery to ensure that the supplier is meeting current business requirements and continuing to adhere to the contract agreements and SLAs, and that performance is competitive with alternative suppliers and market conditions.