Connect
Updated on December 8, 2025
You signed the contract. You deployed the software. The users are logged in.
For many IT departments, the relationship with a new vendor ends right there. This “set it and forget it” mentality is a dangerous trap. It leaves organizations vulnerable to security risks, wasted budget, and poor service delivery.
The reality is that signing the Service Level Agreement (SLA) is just the beginning. The real work lies in holding that vendor accountable to the promises they made.
Without a structured way to measure performance, you are flying blind. You rely on anecdotal evidence rather than hard data. This makes it nearly impossible to enforce contracts or mitigate risks effectively.
The solution is vendor scorecarding.
The Problem with Passive Procurement
Most IT professionals struggle to hold key technology vendors accountable. This usually happens for two reasons.
First, contracts are often vague. They contain ambiguous language about uptime or support response times that is hard to measure.
Second, there is a lack of continuous performance data. You might know if a service goes down completely. But do you track the micro-outages that kill productivity?
Do you track how long it takes their support team to resolve a critical ticket? Without this data, you cannot prove a breach of contract. You are paying for a service level you might not be receiving.
What Is Vendor Scorecarding?
Vendor scorecarding is a systematic process for evaluating the performance of your third-party suppliers. It moves you away from subjective feelings and toward objective facts.
Think of it as a report card for your software providers. It aggregates data points across security, performance, and support into a single view.
By implementing a robust Vendor Health Dashboard, you gain visibility. You can see exactly which tools are adding value and which are introducing risk.
Step 1: Segment Your Vendors
You cannot monitor every single SaaS application with the same level of scrutiny. An average enterprise might have hundreds of applications. You need to prioritize.
Start by segmenting your vendors based on risk and business impact. We recommend three primary categories:
- Strategic Vendors: These are critical to your business operations. If they go down, you go down. Examples include your Identity Provider (IdP) or your cloud infrastructure host.
- Preferred Vendors: These are important but replaceable. They have a moderate impact on daily operations. Examples might include project management tools or creative software.
- Transactional Vendors: These are low-impact tools used by small groups. The risk is minimal.
Once you have segmented your list, adjust your review frequency. Strategic vendors require a monthly review. Preferred vendors can be reviewed quarterly. Transactional vendors only need an annual check.
Step 2: Define Measurable KPIs
A scorecard is only as good as the data you feed into it. You need to track clear, measurable Key Performance Indicators (KPIs).
Avoid vague metrics like “good support.” Instead, focus on quantifiable data points.
Performance and Reliability
- Actual Uptime: Compare this against the guaranteed uptime in the SLA.
- Incident Frequency: How often do service disruptions occur?
- Mean Time to Resolution (MTTR): How fast do they fix broken features?
Security Posture
- Compliance: Do they maintain their SOC2 or ISO certifications?
- Vulnerability Management: How quickly do they patch known security flaws?
- Data Handling: Are they adhering to GDPR or CCPA requirements?
Support Quality
- First Response Time: How long does it take to get a human on the line?
- Ticket Resolution Rate: What percentage of issues are resolved on the first contact?
Step 3: Automate the Data Collection
The biggest hurdle to scorecarding is manual effort. You do not have time to manually log uptime statistics in a spreadsheet every week.
You need to automate the tracking of performance against your KPIs. This is where modern IT management tools become essential.
You need a centralized system that provides visibility into user access and software usage. This data allows you to validate vendor invoices and verify user adoption rates.
If a vendor charges you for 500 seats, but your data shows only 300 active users, you have leverage. You can negotiate a better rate or reduce your license count at renewal.
Why This Reduces Risk
Vendor scorecarding is not just about saving money. It is a vital security practice.
Continuous monitoring helps you identify risk early. If a vendor’s security score drops, you know immediately. You can take action before a breach occurs.
It also enforces SLAs. When you come to a quarterly business review with hard data, the dynamic changes. You are no longer asking for better service. You are proving that they owe it to you.
This approach transforms the vendor relationship. It moves from a transactional purchase to a performance-based partnership.
Take Control of Your Vendor Ecosystem
Stop guessing about your vendor performance. Start measuring it.
By implementing a scorecarding strategy, you ensure that your partners are meeting their obligations. You protect your organization from security risks and financial waste.
JumpCloud makes this process easier.
With JumpCloud Directory Insights, you get deep visibility into user activity and authentication events. This data collection is the foundation of accurate usage tracking.
With JumpCloud SaaS Management, you can uncover shadow IT and track software utilization across your organization. You gain the insights needed to build effective scorecards and enforce your SLAs.
Secure your users. optimize your spend. Hold your vendors accountable.
Start your trial of JumpCloud today to see what you have been missing.
