Partner / Vendor Due Diligence

 Do you know everything you need to about a new key vendor, acquisition target, or business partner?

Companies bet their very existence many times on new outsourcing firms, partners, or vendors without knowing enough about their new partner's company and their mission critical systems.

Some of the key questions that have tripped up relationships include:

  • How they prioritize and assign resources for your needs?

  • What are the priorities for handling enhancement requests or operational changes?

  • Do they have enough staff and resources to handle another major relationship concurrently with yours?

  • Are their quality assurance processes up to your standards?

Just as companies rely on MBAs to crunch the financials and render an opinion on a partner's apparent financial stability, RondoTech consultants are experts at examining technical, support, and security aspects of a partner. Our due diligence methodology ensures that the critical success factors for the relationship are identified at the outset and are then focused upon while examining the partner's firm.

We look out for your interests.

Contact us for the white paper Partner Due Diligence: Are They Right for Us?

Discretion

Many of these engagements are sensitive given the nature of the work and that public companies are involved. Some of the project profiles include names, but not many. When names are used, generally only one party is identified.

 

 

Sample Project Profiles

Assessed Stability and Reliability of Application Service Provider for Mission Critical System Outsource

 

Performed Technology Due Diligence on Acquisition Target

 

Assess IT Operations for Business Volume Sensitivity / Constraints

  Performed Technology Due Diligence of Potential Business Partner

Back

Who is a Partner?

Many people are confused about what firms may be their "partners" vs. just a vendor relationship. There are a few questions that help determine whether a firm is a partner:

  • Is this the only firm that can provide this product or service? (support for your SAP ERP system)

  • Do you outsource daily functions to the firm? (call center service for onsite support scheduling)

  • Are there serious consequences if that firm has an interruption in their ability to conduct business? (parts supplier with just in time delivery to your plant)

  •  Are you their biggest customer and their product is critical to your operation? (provide a highly customized computer application for loan processing)

If any of these remind you of a relationship with a vendor, they probably are a partner rather than just a vendor. Their problems may quickly become your problem so be sure of their capabilities, strategies, and continuity plans before an issue exposes both of you to losses.

 

 

 

2008 RondoTech Consulting, Inc.