When working with NZ businesses we keep finding a hidden issue that drains their time and slows them down - “vendor sprawl” (or far too many vendors). As mid-size companies grow they accumulate multiple tech vendors - one for networking, another for telephony, yet another for security, etc. Before they know it, they’re juggling 5, 6, or even 7 vendors, with each focused on a narrow area of expertise.

The Hidden Costs of Vendor Sprawl

Having so many vendors might not feel like the biggest problem you have to solve, but vendor sprawl quietly creates a number of issues that frustrate your people and slow your business down.

It’s eating up your time: Every vendor relationship requires meetings, reviews, and ongoing management. Instead of focusing on your business, you’re stuck coordinating with vendors.
No ownership: With so many players involved, accountability becomes blurred. When something goes wrong, vendors can point fingers at each other rather than solving the problem, leaving you stuck in the middle and owning every issue.
Everything is Reactive, Not Proactive: Specialist vendors often work reactively, because they are engaged to fix problems within their silo. They rarely have a holistic view across your environment. Without a broader, proactive view, you miss out on opportunities for cost-saving or innovation.
Increased Costs: With multiple vendors, you are probably paying more. Each sees you as a small client, and your pricing will reflect this.

The Solution: Vendor Consolidation

Instead of spreading your IT management across multiple providers, simplify by consolidating with a core partner. This partner should be capable of managing most of your standard IT services, including tech support, Microsoft tools, cloud workloads, PCs, hardware, telephony, and networking.

A core partner ensures your technology stack works seamlessly, proactively drives improvements, and holds increased accountability for your IT environment. This gives you huge improvement:

More strategic: You spend less time managing vendors, and more time focusing on your business goals. Your partner spends more time proactively improving your environment with an increased level of ownership and accountability.
Cost Efficiency: Bundled services make you a higher value client. You’ll get better service and better discounts.
Stronger Security: A unified approach improves security across the board, reducing risks from siloed systems.
Better Vendor Relationships: With fewer engagements, you can invest more time in building strategic partnerships.
Improved Visibility: With more of your environment managed by one partner, you can get a consolidated view on issues, risks, and improvement.

There’s still a place for specialist vendors in areas where it makes sense - e.g. for customised applications (eg CRM, ERP etc). But these should be the exception, not the rule.

Whatever vendors you have, make it a strategic and conscious decision rather than an organic accident!

Most mid-size business have very similar core IT requirements that can be managed by one partner. If you’re working with more than 3 vendors, it’s time to reassess. Consolidating your IT operations under one core partner can save you time, money, and headaches, and drive better outcomes for your business.

Remember, IT should be a driver of growth - not a source of frustration. If you’re not sure where to start, send us a chat and ask about our TECH INSIGHTS review.