Everything you need to know about IT procurement
Computers, Internet, Intranet, and telecommunication equipment have become the essential tools in this new technological world powered by information technology or IT. A large number of companies, organizations and government departments, apart from individuals and families, are using information technology for effective analysis and dissemination of information, as well as sharing of knowledge.
Deploying necessary tools and services and also managing them effectively has led to the creation of a separate managerial function demanding skill and expertise in IT procurement to achieve the goal of success at a relatively lesser cost.
Procurement does not mean buying. Buying is only a part of the procurement process. The dictionary refers procurement to the methodical way of acquiring goods and services at right prices at right places from the right sources in right quantities at the right time, such that cost of procurement can be relatively reduced without compromising on the quality. Procurement also involves the effective installation and management of IT related goods and/or services.
The procurement in IT department of an organization becomes more challenging as innovations, discoveries and modifications spring up every alternate day. One needs to make decisions either to purchase and install new versions or take recourse to third-party resources for assistance.
The primary goal of a procurement department of a large organization using Information technology is to reduce the cost of the infrastructure, while ensuring that the quality is not compromised at any cost.
It becomes imperative on the part of the procurement department to ensure that the actual requirement for the organization is correctly assessed taking into consideration all the aspects into account.
In this fast-expanding IT department, a large number of vendors are available in the market place. For example, one can try to either buy new software from the vendors or take a decision to design from scratch new customized software. In such cases, it becomes a duty of the procurement department to explore the alternatives from the point of cost and quality of services. If the cost of developing the software in-house will yield better quality services over a longer period with less maintenance and other related costs, then it would be advisable to go for in-house development than sourcing the software from other vendors. If the other option appears viable, then the idea of in-house development might be put in back burner and outside software services can be considered.
Careful analysis of the cost-benefit analysis before deciding to embark on a procurement is very essential because procurement is not just a one-time affair and should have a relatively longer life for the product.
Reliability, consistency, after-sales services and above all, a good relationship between the buyer and the seller are very essential aspects that one should be aware of in relation with procurement in general and IT procurement in particular. Because, the effective and efficient functioning of the equipment and/or services related to information technology determine the victory of the organization.
Thus, the procurement department has to consider all possible options while taking a decision.