Procurement of essential hardware, software, and other required components is one of the essential requirements for an organization that uses or intends to use the power of information technology to sustain and flourish in their specific line of business activities.
Many people might be under the wrong impression or illusion that buying the required materials and/or systems is what we mean by procurement. Buying is only a part of the procurement activity, which accounts for less than 30% of the total procurement activities.
Procurement process encompasses a whole range of activities right from identification of the need, locating the possible sources, invitation of bids, selecting the supplier, placement of the purchase order, taking delivery of the equipment, installation of the equipment, training the personnel for operating the equipment, entering into annual maintenance contracts and after-sales support services.
In a broader sense, the procurement activity has to pass through a series of steps before a final decision is made and the required goods or services or procured and installed in the organization.
The procurement process starts with the identification of a need for new equipments and/or services. Mere identification of the need will not be sufficient. The need should be substantiated with justification that it will lead to better functioning and result in more savings to the organization in the medium term.
Once the need is ascertained and the benefits are arrived at, the process of defining the requirements of the equipment must be finalized. Various options available for the equipment in the market place should be explored and quotations should be invited from short-listed vendors for finalizing the placement of order with the selected vendor.
Upon deciding the vendor and placing the order, the process of follow-up and taking delivery of the equipments will be the next priority. The equipment should be delivered and installed in the company’s premises by the vendor and provide the necessary training and assistance in deploying the equipment for use.
This concludes one part of the IT procurement process. Once the equipment has been deployed at the organization’s premises and put to use, the second part of the procurement process should be addressed.
This process includes entering into Annual Maintenance Contracts with the supplier, arranging for training the personnel in using the equipment and such other things so that the smooth functioning of the equipment for a longer period without any disruption or interruption can be ensured.
With modernizations and upgrades becoming the norm in the IT industry, the IT procurement process should ensure that the latest additions or modifications in the equipment are available at no extra cost such that the organization is not deprived of any advancement in the technology.
The IT procurement will be complete if the above-mentioned steps are followed so that the company will reap the benefits of the new equipment and results in cost savings in this competitive world.