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Minimize the Cost of Maximizing Talent Through Vendor Rationalization


While the economy starts to recover, business leaders are still looking to be prudent and invest only in the most critical imperatives. Even though budgets are beginning to increase, leaders are scrutinizing learning vendor spending and focusing on process and cost management - presenting an opportunity for improvement.

Internal teams are now looked upon for more strategic activities including talent development, measurement of learning effectiveness and learning activities that can add value for the investment. However, using a vendor for these types of activities may be a better option.

In order to build the desired vendor mix, organizations should follow a rationalization process. This will help with striking the right balance of versatility, specialization, breadth, depth and commitment. The right mix should also consider the company's needs for full service vendors with broad capabilities versus transactional vendors for one-off projects that are highly specialized.

Deloitte recommends an eight-step approach that includes bringing structure and time-tested processes to our clients to help them in their efforts to identify and assess learning vendors. As detailed in the attached document, our framework includes:

  1. Assess internal needs and perform diagnostic
  2. Identify requirements
  3. Identify vendors
  4. Conduct request for information
  5. Conduct vendor on-site meetings
  6. Select preferred vendors
  7. Onboard vendors
  8. Track performance and evaluate results

Vendor rationalization is no longer a luxury, but a necessity. Organizations should spend the time to evaluate their current vendors and analyze future vendor relationships. If not, they may end up hemorrhaging cash due to inefficient processes.

As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

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