Squeeze the supplier!
Phrases such as "squeeze the supplier" and "sweat their balance sheet" are commonly used by many CIOs in relation to their technology providers. The post-Lehman market conditions perhaps justify this approach to vendor management.
It is certainly a good discipline to ensure that you are not overpaying for the service, but there comes a point when the provider's quality of service is compromised, which of course has implications for your users and your clients.
This unhealthy relationship is often underpinned by mutual distrust. So trust building has to be a priority.
But making the first move might make you commercially vulnerable. However if you recall that this is not an exercise in power politics, but one of amplifying value as it flows from the vendor community through the IT function to its final manifestation in the form of business value.
Vendors similarly need to remember that 'order taking' or even hustling doesn't necessitate a healthy relationship and may even hinder short term sales. However if you consider that the CIO is your primary sales representative in respect of selling your 'big ticket' propositions into the boardroom, you might want to address this dysfunctionality as a priority.
