Key performance indicators (KPIs) are the best source of information for the IT steering committee to evaluate whether a third-party supplier is delivering the correct level of service, as they are metrics that measure the achievement of specific goals or objectives. KPIs can help the committee assess the quality, efficiency, effectiveness, and value of the supplier’s services, as well as their alignment with the enterprise’s strategy and expectations. KPIs can also help the committee identify and address any issues or gaps in the supplier’s performance, as well as monitor and report on their progress and improvement.

Service portfolio management, vendor status reports, and operational cost reduction reports are also useful sources of information for the IT steering committee, but they are not as comprehensive and reliable as KPIs. Service portfolio management is the process of managing the lifecycle of IT services, from conception to retirement. Service portfolio management can help the committee understand the scope, objectives, and benefits of the supplier’s services, as well as their interdependencies and risks. Vendor status reports are documents that provide updates on the supplier’s activities, deliverables, milestones, and issues. Vendor status reports can help the committee track and communicate the status of the supplier’s services, as well as identify and resolve any problems or conflicts. Operational cost reduction reports are documents that show how the supplier’s services have reduced or optimized the enterprise’s operationalcosts. Operational cost reduction reports can help the committee evaluate the financial impact and return on investment (ROI) of the supplier’s services.

References := Performance Measurement Metrics for IT Governance; KPIs for Corporate Governance Dashboard - BSC Designer; feature Performance Measurement Metrics for IT Governance - ISACA; Performance Measurement Metrics for IT Governance - ISACA.