"We have sort of taken up a very good monitoring mechanism of all SLAs with vendors. We work with them closely to understand their challenges and guide them wherever we can to improve their service. We have seen a drastic turnaround."
In Yes Bank's case, this kind of client-vendor relationship attains more significance when you realize that the bank works on a total outsourcing model. As Sethi puts it, the bank has outsourced everything from their "IT infrastructure to application management".
Therefore, the vendor relationship and vendor management is core to running their IT operations.
However, when viewing this relationship, it is important to consider the carrot and stick angle to Yes Bank's relationship with its vendors. Sethi reiterates, "We have a very fair agreement with our vendors. We have the agility and flexibility to move out of a relationship at a very fast rate and at a very low cost if there is an issue. If vendors know that you can move out of the relationship in case things don't go right, they will always be on their toes."
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