Software automates financial vendor selection process.

Press Release Summary:



Used by procurement departments within financial institution, Vendor Selection Processor consists of software-based analytical tools designed to streamline scoring phase of vendor selection initiative. It stores vendor evaluation criteria, manages scores from those engaged in selection process, and analyzes and reports results. At end of process, VSP identifies vendor best suited to financial institution's budgetary and business needs.



Original Press Release:



TowerGroup Launches Analytical Tool to Help Financial Institutions Support and Streamline Vendor Selection Process



Vendor Selection Processor (VSP) Addresses Significant Challenges Institutions Face in Managing Data and Processes Critical to Vendor Evaluations

NEEDHAM, Mass., May 29 /- Evaluating and selecting technology vendors can often be a time-intensive, data-heavy and challenging process for financial institutions. Yet an effective vendor selection process is mission-critical to securing the right partner and maximizing return on IT investments.

To bring greater clarity and efficiency to vendor selection, TowerGroup has launched a comprehensive new analytical tool for use by procurement departments and vendor selection process leaders within a financial institution.

The TowerGroup Vendor Selection Processor (VSP) is a software-based, analytical tool designed to streamline the scoring phase of a vendor selection initiative. The tool is used to store vendor evaluation criteria, manage scores from those engaged in the selection process, and then analyze and report the results. At the end of the process, the VSP identifies the vendor best-suited to a financial institution's budgetary and business needs. Using an automated tool to manage this process makes it easier to evaluate a new vendor or benchmark an existing vendor against industry best practices. Moreover, it gives financial institutions transparency into a vendor's strengths and weaknesses to establish a strong negotiating position and manage operational costs.

"The amount of detail involved in vendor selection can be enormous, particularly when an institution is looking to secure or evaluate a technology partner on a global scale," said Karen Cone, TowerGroup president and CEO. "Managing and getting the most out of vendor selection has been a perennial challenge across institutions of all sizes, and certainly one we've seen first-hand on countless occasions of supporting clients through the process. There is a tremendous marketplace need for a tool that helps make vendor evaluations more consistent, more structured and, ultimately, more objective and actionable."

"We believe the Vendor Selection Processor is truly a first-of-its-kind offering, in terms of the framework it provides," said Tim Sharman, managing director of the TowerGroup Specialized Advisory Group which developed the VSP. "There are sample questions and categories provided to help guide the creation of RFPs and specific evaluation criteria. There are methodologies outlined to put structure and standards around how evaluators score each individual element. And there is the clarity of the final outputs it provides."

Sharman notes the VSP also helps ensure that participants in a vendor selection initiative from different functional areas, such as procurement and line of business, are following the same process to reach their destination - by leveraging consistent methods of evaluation and scoring.

TowerGroup initially developed the Vendor Selection Processor at the request of a top ten banking institution that was seeking a more robust scoring model to leverage in global vendor evaluations. It was first used to support the search for a vendor partner that would ultimately operate in more than 30 countries around the globe.

Key benefits of the VSP include:
- Streamline internal operations and reduce operating costs by automating manual procurement processes
- Proactively manage SOX (Sarbanes-Oxley) compliance by minimizing "maverick" spending
- More easily assess existing vendors against industry best practices
- Increase organization buy-in and improve contract compliance

"The Vendor Selection Processor offers a highly-effective means of organizing a vast array of data points, bringing greater consistency and repeatability to all phases of the process," said David Dietrich, manager in the Specialized Advisory Group at TowerGroup, and lead developer and product manager of the VSP. "Ultimately, we believe the VSP promotes a better method not just for financial institutions, but also for the vendors who put tremendous time, energy and investment into the selection process. When an institution has access to tools that bring greater clarity to vendor evaluation criteria and scoring, everyone benefits."

The Vendor Selection Processor makes its official debut at the 2007 TowerGroup Financial Services Business & Technology Conference and Exhibition, being held May 30 through June 1, 2007, at The Westin Copley Place Hotel in Boston, Mass.

Those interested in learning more about the Vendor Selection Processor may contact David Dietrich directly at +1-781-292-5288 or via email at ddietrich@towergroup.com . Members of the press may contact Rachael Adler at CooperKatz at +1-212-455-8037 or radler@cooperkatz.com.

About TowerGroup: TowerGroup is the leading research and advisory services firm focused exclusively on the financial services industry. A respected source for trusted information and advice, TowerGroup brings many of the world's leading financial institutions, technology companies, and professional services firms a deeper understanding of the business and technology issues impacting their organizations. Headquartered near Boston in Needham, Massachusetts, and with offices in North America and Europe, TowerGroup serves a global client base. Visit www.towergroup.com/ for more information.

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