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In the modern digital ecosystem, the intricate dance between IT governance and vendor management holds paramount significance. This comprehensive exploration delves into why vendor management is integral to an organization’s IT strategy, touching upon risk mitigation, value optimization, and strategic alignment. Learn from the real-world practices of industry giants like Maersk, Xerox, and Toyota, and uncover effective vendor management strategies that can revolutionize your operational efficiency and risk management. This chapter promises a roadmap to building robust vendor relationships, underpinned by the principles of IT governance.