AI & Business

Why vendor consolidation, even handing whole systems to a new IT supplier, pays off now (and why it did not before)

Is there an IT supplier you simply cannot stand? The product might not even be the problem. It is that every call and every email sets off a red light in your head, your stomach tightens, because they are not there to help. They talk down to you, the work is a chore to them, and every support request turns into a fight.
Péter Csillag
CEO, Gloster Digital Group

But why are they still here? Maybe they were brought in as a result of a single bad decision; maybe a former manager hired them; maybe the supplier is just a distorted remnant of a previous system—but one thing is certain: you can tell now that they need to go. You may find them unreliable, inflexible, or even rude, but until now you’ve never dared to let them go, because the risk and cost of replacing them always seemed greater than what you’d be willing to endure just to get rid of them.

Well, now is exactly the right time to replace it.

The math behind vendor consolidation isn't complicated

If you stop to think about why managing the same IT vendor portfolio has been such a pain for years, you’ll likely run into the same problems as everyone else. These four points are what make any executive’s eyebrows raise when they’ve ever looked over a painfully long vendor list or one that contains unpleasant items.


The Four Main Pain Points

Cost

A small service provider can never achieve economies of scale—a decent SLA requires a team, and that simply isn't feasible with a small contract, so either you or the provider will end up paying unreasonably high costs.

Vendor Laziness

The big, long-established suppliers get complacent precisely because you’re so dependent on them. They’re deeply entrenched; they aren’t worried, they have no competitors breathing down their necks, and they’re in no hurry to improve—and you pay their monthly bills like a good little kid.

A Fragmented System

Separate services, separate interfaces, separate data storage, separate APIs, separate access points—each comes with its own risks and costs. And that’s exactly why a unified modernization effort—such as the implementation of comprehensive AI automation—will be more difficult and expensive than you might think at first glance.

Loss of Focus, Increasing Risk

The more vendors you have, the more procurement decisions, contracts, points of contact, and people needed to manage those vendors. This consumes your attention, increases costs, and raises the risk of errors (security, compliance, etc.). Because every vendor poses a risk. For some, that risk can be quite significant.

Why now—and why not earlier?

I myself have been involved in major takeover projects where we replaced long-standing suppliers who had become completely complacent in their positions. They delivered low-quality but expensive work because billing on a time-and-materials (T&M) basis was especially advantageous for them—their goal was to rack up as many billable hours as possible and maximize revenue, not modernization, and certainly not automation.

The client always sees this, and if they think it through logically, they’ll take on the risk of vendor consolidation or replacement—which, in this case, is much lower than staying with the old vendor. After all, it’s much better to entrust IT systems—previously supplied and supported by another provider—to a more agile, professionally better-prepared team than to wait for the inevitable deterioration of SLAs—whether slow or fast—as well as compliance issues and investigations resulting from system outages.

What can you expect from a new service provider? A comprehensive assessment, review, analysis, audit, planning, transition, follow-up optimization, and automation wherever possible—as well as a reduction in annual service fees by as much as half or even a third.

So why has almost no one done this so far? According to my research, about two-thirds of executives at medium and large companies would like to consolidate their vendors and aim for a reduction of about 20% in the number of vendors within a year. The reality, however, paints a very different picture: in the past, these projects took an average of 30–36 months to complete and didn’t yield a positive ROI until the third year—all while carrying significant risks. With such a long lead time and such a slow return on investment, it’s no wonder that most companies chose not to even start these projects.

What Changed the Game: AI

AI-powered analysis and development methodologies not only drastically reduce the costs of vendor switches and system takeovers, but also minimize the associated risks. The process, the code, and the system can be thoroughly reviewed in a short amount of time—and based on this, both the vendor switch and the sequence of steps for modernization and automation can be planned with confidence. Of course, this does not mean that the need for human resources will be zero, nor does it mean that risk will completely disappear from such a project. There will always be unexpected issues, as well as steps planned based on missing or incorrect information that will need to be adjusted along the way—and, of course, everything must be reviewed, tested, verified, corrected, and retested if necessary. If only because the replaced vendor may not necessarily be cooperative in handing over everything completely. That’s just part of the deal.

But even with these limitations, the cost of such a project can be reduced by as much as 30–50%, and the major risks can be reduced to nearly zero.

After all, we now have the capability to conduct comprehensive code reviews, as well as in-depth analysis of user and technology logs, continuous monitoring, and rapid intervention—all so that we can thoroughly examine every process, risk, and dependency, test everything, and respond promptly to any anomalies.

That's exactly why we at Gloster love these projects

From an IT perspective, these are actually simple tasks: user and business requirements are largely known and well-defined, and the previous vendor’s system already “knows” the functionality — our only job is to use AI technology, skilled colleagues, and a well-developed methodology to deliver, support, and maintain all of this more affordably, better, more efficiently, and more securely. It’s a piece of cake—we’re good at this. So if you have a vendor you’ve been wanting to get rid of for a long time but were afraid of the costs and risks, now is your time!

So why are they still here? Maybe a single bad decision brought them in. Maybe they were appointed by a previous manager. Maybe the supplier is a legacy supplier left over from a system you replaced years ago. Whatever the reason, you already know they should go. You think they are unreliable, inflexible, sometimes plain rude, and yet you have never dared to say goodbye, because the risk and cost of switching always looked bigger than the aggravation was worth.

Now, it is time to replace them.

The maths of vendor consolidation is not complicated

If you look closely at why managing the same IT supplier portfolio has been painful for years, you will probably recognise the same problems most organisations face.

Cost

A small supplier never reaches economies of scale. A decent SLA needs a team, and a small contract simply does not cover it, so either your costs or theirs end up unreasonably high.

Vendor laziness

Large, long-established suppliers grow lazy precisely because your exposure to them is high. They are deeply embedded, they do not worry, no competitor is at their heels, so they are in no hurry to improve, while you pay their monthly invoice like a good child.

A fragmented system

Separate services, separate interfaces, separate data storage, separate APIs, separate access rights, each with its own risk and its own cost. And that is exactly why a single unified modernisation — say a broad AI automation rollout — becomes harder and more expensive than you would first think.

Lost focus, rising risk

The more vendors you have, the more procurement decisions, contracts, points of contact and people managing vendors you need. It eats your attention, the cost climbs, and so does the chance of error (security, compliance and the rest). Because every supplier carries risk. Some of them a great deal.

These are the four points that make the eyebrow twitch on any leader who has ever stared down a vendor list that is painfully long or full of problematic suppliers.

I have taken part in large takeover projects myself, where we replaced a long-reigning supplier who had grown thoroughly comfortable in their position. They did low-quality but expensive work, because billing on a T&M basis suited them nicely. The goal was a high number of hours worked and maximised revenue, not modernisation, and certainly not automation. The client always sees this, and if they reason it through, they take on the risk of vendor consolidation or replacement, which by that point is far smaller than staying with the old supplier. Because it is far better to hand the IT systems previously delivered and supported by someone else to a nimbler, more capable team than to wait for service levels to deteriorate, compliance issues to emerge, or a system outage to trigger an internal or regulatory investigation. What can you expect from a new supplier? A full assessment, review, analysis, audit, planning, migration, then optimisation, and automation wherever possible, along with annual service fees potentially being reduced to as little as one-half or one-third of their current level. So why has almost no one done this until now? Based on my research, roughly two-thirds of leaders at medium-sized and large companies want to consolidate their vendor base, and would aim to reduce the number of vendors they work with by around 20% within a year. The reality has looked very different: in the past these projects ran for an average of 30 to 36 months, and only turned a positive ROI in the third year, while carrying a great deal of risk. With lead times and returns like those, it is no wonder most people never even started the projects.

But one thing has changed the equation: AI.

With AI-supported analysis and development methodologies, the cost of vendor switches and system takeovers falls drastically, and so does the risk. In a short time the process, the code and the system can be reviewed in full, and on that basis both the supplier switch and the sequence of modernisation and automation steps can be planned with confidence. That does not eliminate the need for human expertise, of course, just as the risk does not disappear entirely from a project like this. There will always be surprises, steps planned on the basis of missing or wrong information that need adjusting along the way, and of course everything has to be reviewed, tested, checked, fixed and retested if need be. Not least because the replaced vendor will not necessarily be helpful about handing everything over in full. That is part of the deal.

Even with those constraints, a project like this can be made 30 to 50% cheaper, and the more significant risks can be squeezed close to zero.

We now have the means for a full code review, indeed for in-depth analysis of user activity and technical logs, continuous monitoring and rapid intervention, so that we can thoroughly examine every process, risk and dependency, test everything, and respond to every deviation in good time.

This is exactly why at Gloster we like these projects

Not by accident. From an IT point of view these are essentially straightforward tasks: the user and business requirements are largely known and settled, the previous vendor's system already »knows« the functionality, and our only job is to deliver, support and maintain all of it cheaper, better, more efficiently and more securely, using AI technology, capable colleagues and a well-developed methodology. This is a well-understood challenge, and it is exactly the kind of work we do well. So if there is a supplier you have wanted to replace for some time, and only the costs and risks held you back: now is your time.

Have a supplier you have long wanted rid of?

Warum ist dieser Dienstleister überhaupt noch an Bord? Vielleicht kam er durch eine einmalige Fehlentscheidung ins Haus, vielleicht hat ihn ein früherer Manager geholt, vielleicht ist er ein Relikt aus einer alten Systemlandschaft. Sicher ist nur: Sie spüren inzwischen, dass er gehen müsste. Sie halten ihn für unzuverlässig, unflexibel, vielleicht sogar für unhöflich – und trotzdem haben Sie sich bisher nie getraut, sich von ihm zu trennen. Weil Risiko und Kosten der Ablösung immer größer wirkten als der Ärger, den Sie stattdessen in Kauf genommen haben.

Jetzt ist der Moment gekommen, ihn auszutauschen.

Die wirtschaftliche Logik der Vendor-Konsolidierung ist nicht kompliziert

Wenn Sie darüber nachdenken, warum die Steuerung Ihres IT-Dienstleister-Portfolios seit Jahren so mühsam ist, stoßen Sie wahrscheinlich auf dieselben vier Punkte wie alle anderen. Jede Führungskraft, die schon einmal eine schmerzhaft lange Vendor-Liste durchgearbeitet hat, wird sie wiedererkennen.

Die Rechnung der Vendor-Konsolidierung ist nicht kompliziert

Kosten

Bei einem kleinen Anbieter kommt nie Skaleneffekt zustande. Für ein anständiges SLA braucht es ein Team, und ein Team lässt sich aus einem kleinen Vertrag nicht finanzieren.

Lieferanten-Bequemlichkeit

Die großen, seit Langem eingesessenen Anbieter werden träge, weil Ihre Abhängigkeit von ihnen groß ist.

Zersplittertes System

Getrennte Services, getrennte Schnittstellen, getrennte Datenhaltung, getrennte Zugänge – jeweils mit eigenem Risiko und eigenen Kosten.

Verlorener Fokus, steigendes Risiko

Je mehr Vendoren Sie haben, desto mehr Beschaffungsentscheidungen, Verträge und Ansprechpartner kommen zusammen.

Ich habe selbst an großen Systemübernahmen mitgewirkt, bei denen wir einen seit Jahren etablierten Anbieter abgelöst haben – einen, der es sich in seiner Position vollständig eingerichtet hatte. Abgerechnet wurde auf T&M-Basis, was für ihn besonders angenehm war: Ziel waren möglichst viele abgerechnete Stunden und maximaler Umsatz, nicht die Modernisierung und schon gar nicht die Automatisierung. Der Kunde sieht das immer. Und wenn er es zu Ende denkt, nimmt er das Risiko einer Konsolidierung oder eines Wechsels auf sich – denn dieses Risiko ist inzwischen deutlich kleiner als das Risiko, beim alten Anbieter zu bleiben. Es ist schlicht besser, bislang fremdbetreute IT-Systeme einem schnelleren, fachlich stärkeren Team anzuvertrauen, als der sicheren Verschlechterung der SLAs zuzusehen. Was dürfen Sie von einem neuen Dienstleister erwarten? Eine vollständige Bestandsaufnahme, ein Audit, einen Umstellungsplan, die Migration und danach laufende Optimierung sowie – wo immer möglich – Automatisierung. Und, je nach Ausgangslage, eine Senkung der jährlichen Servicegebühren auf die Hälfte bis auf ein Drittel des bisherigen Niveaus. Warum hat das bisher fast niemand gemacht? Rund zwei Drittel der Führungskräfte in mittelständischen und großen Unternehmen wünschen sich eine Vendor-Konsolidierung und würden die Zahl ihrer Dienstleister innerhalb eines Jahres gern um etwa 20 % reduzieren. Die Realität sah bisher anders aus: Solche Projekte dauerten im Schnitt 30 bis 36 Monate und brachten erst im dritten Jahr einen positiven ROI – bei gleichzeitig hohem Risiko. Bei einer solchen Durchlaufzeit und einer solchen Rentabilität ist es kein Wunder, dass die meisten sie lieber gar nicht erst begonnen haben.

Zwei Drittel der Führungskräfte wünschen sich eine Vendor-Konsolidierung – doch die Projekte dauerten bisher 30 bis 36 Monate und brachten erst im dritten Jahr einen positiven ROI.

Was die Gleichung verändert hat: KI

Mit KI-gestützten Analyse- und Entwicklungsmethoden sinken nicht nur die Kosten eines Anbieterwechsels und einer Systemübernahme drastisch, sondern auch deren Risiko. Prozesse, Code und Systemlandschaft lassen sich in kurzer Zeit vollständig erfassen – und darauf aufbauend sowohl der Wechsel als auch die Schrittfolge von Modernisierung und Automatisierung verlässlich planen. Der Bedarf an menschlicher Expertise sinkt damit natürlich nicht auf null, und das Risiko eines solchen Projekts verschwindet ebenso wenig. Es wird immer Unerwartetes geben und Schritte, die auf Basis fehlender oder falscher Informationen geplant wurden und unterwegs angepasst werden müssen. Alles muss geprüft, getestet, korrigiert und bei Bedarf erneut getestet werden – schon deshalb, weil der abzulösende Vendor sich bei der lückenlosen Übergabe nicht unbedingt kooperativ zeigt. Das gehört zu solchen Projekten dazu.

Selbst mit diesen Einschränkungen lassen sich die Kosten eines solchen Projekts um 30 bis 50 % senken und die wesentlichen Risiken beherrschbar halten.

Denn heute stehen uns eine vollständige Code-Durchsicht, eine tiefgehende Analyse, kontinuierliches Monitoring und schnelle Eingriffe zur Verfügung: genug, um jeden Prozess, jedes Risiko und jede Abhängigkeit zu durchleuchten, alles zu testen und auf jede Abweichung rechtzeitig zu reagieren.

Genau deshalb mögen wir bei Gloster diese Projekte

Aus IT-Sicht sind das klar umrissene Aufgaben: Die Nutzer- und Geschäftsanforderungen sind größtenteils bekannt und ausgereift, und die Funktionalität beherrscht das System des bisherigen Vendors bereits. Unsere Aufgabe ist es, all das mit KI-Technologie, erfahrenen Fachleuten und einer ausgearbeiteten Methodik besser, günstiger und sicherer zu liefern und zu betreiben. Eine klare Aufgabe – und darin sind wir gut. Wenn Sie also einen Dienstleister haben, den Sie längst loswerden wollten, vor den Kosten und Risiken aber zurückgeschreckt sind: Jetzt ist Ihre Zeit gekommen.

Wir nehmen Ihr aktuelles Portfolio auf und zeigen Ihnen, welcher Vertrag sich zuerst ablösen lässt.

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