Consolidating vendor relationships is key

Consolidating vendor relationships is key

Making the right business decisions in a recession is crucial for CIOs.

Making the right business decisions in a recession is crucial for CIOs, says Datacraft Asia chief operating office Dilip Kumar. Based in Singapore, Kumar was in New Zealand recently to open the company’s new office in Auckland central.

He works across four markets including financial, telecom service providers, manufacturing and transportation.

Kumar says Asia Pacific CIOs are asking him what they can do to save costs.

“There is a limit on how much CIOs can spend and how much they can’t spend," says Kumar.

He suggests looking at virtualisation and cloud computing.

“One way is to go to virtualised data on the x86 platform. That is where they [CIOs] are seeing quick returns.”

CIOs are also consolidating vendor relationships. “They are telling me they have too many guys maintaining their multiple country sites.”

Kumar gave the example of a Singapore bank’s CIO he is working with. “He [the customer] has got vendors in Hong Kong, China, India, Vietnam and Indonesia. He is asking me, `If I consolidate these vendors, how much can you give me on the price cut?’.”

Datacraft NZ solutions marketing general manager Phil Goodwin says other forms of consolidation are taking place in the local market.

“We’ve seen this concept of multi-sourcing coming out. At one extreme you have an in-source model where you do it all yourself and at the other extreme you have outsourcing where someone else does IT for you.

“CIOs just don’t have the luxury of cash when they want it, so they’re looking to share that burden with us as suppliers.”

He adds that Datacraft now regularly talks to CIOs of local companies it deals with, such as Kiwibank.

“They have the total burden and cost responsibility for the delivery of IT services. In the past our engagement has been with the network manager. But our capabilities extend well beyond the network now.”

Join the CIO New Zealand group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

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Tags strategycloud computingcostvirtualizationdatacraftvendor management

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