IT procurement refers to the process in which technology is acquired to assist with business operations. Some organisations may choose to invest in external IT procurement providers who help determine the level of IT requirements needed by the company and help manage IT assets. This service can be incredibly valuable to organisations that need to keep up with emerging technologies and IT processes.
What is the role of an IT procurement provider?
IT procurement providers are third-party firms hired to support an organisation’s internal procurement department. These providers have IT expertise and assist with a variety of tasks including strategic planning, supplier collaboration and negotiation. When an organisation decides to work with an IT procurement provider, they often become an extension of the existing procurement resources, offering their specialist knowledge within the field.
The main role of an IT procurement provider is to design an efficient procurement strategy that identifies IT products or solutions that will improve a company’s current processes and help make efficient purchasing choices.
Why might your business need an IT procurement provider?
Many businesses decide they need outsourced IT procurement services as a result of inefficiencies within their current procurement processes, or simply because they want to improve their overall operational performance. Other business needs may include:
Tactical labour
IT procurement requires a lot of strategic planning that meets the demands of an organisation whilst keeping spend to a minimum. Having an additional IT procurement provider can relieve pressure on the internal team to improve productivity elsewhere.
Supply chain management
Some companies may struggle with supply chain management, whether it’s sourcing the latest hardware or managing essential software. An IT procurement provider will use their technical expertise to secure the highest-quality products, whilst negotiating with suppliers to get the best prices possible. This keeps operations running smoothly, without delays or added costs.
Spend analysis
A common IT problem for businesses is they often find themselves following outdated procedures that inflict additional costs, which then impacts the profitability of the business. IT procurement providers not only help in keeping purchasing costs down, but also analyse internal spending and develop strategies that will help cut costs.
How to choose the right IT procurement provider
Determine what you need
The effectiveness of procurement can only be as strong as the team working on it. When selecting an IT procurement provider, ensure you consider the areas in which your current procurement team lacks expertise. You may do this by evaluating the strengths and weaknesses of your current system. By clearly identifying the skill gaps within your team, you can determine where you need to improve to see results.
Think about your level of involvement
After you decide on the type of IT procurement support you need, start to think about the level of collaboration you want. You may decide to outsource your entire IT procurement needs to the third-party, or you might prefer having more involvement and use the providers to complement your current team. This will depend on how much you want to oversee and control the process.
Consider offshore or onshore procurement providers
When it comes to choosing the right IT procurement team, you will need to decide if you want to outsource offshore providers, who can work remotely or onshore IT procurement specialists who will handle your processes more closely to home.
Offshore IT procurement can be financially beneficial, with administrative tasks being easily completed remotely. Whilst onshore procurement teams will be able to offer more practical help such as handling sourcing processes within local environments.
Check PSP affiliations
A final thing to consider when choosing the right IT procurement provider, is to check their affiliations. Some IT procurement services have affiliations, meaning they link buyers and sellers together and are given commission for developing partnerships. In these cases, you may not be getting the highest quality of service, as there is bias within the team. Ensure to discuss this with IT procurement providers before agreeing to their services.
Cheeky Munkey has over 20 years of experience working with IT support and technology suppliers. We offer a seamless IT procurement service that will make it simple for you and your business. If you’re in need of any other IT support, contact us and we will be able to advise you.
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