IT Procurement Strategy

Many organizations across the world are realizing the importance of information technology and adopting innovative technologies to develop and prosper in their business activities.

Such organizations, aware of the tremendous capability that the information technology can offer, are investing hugely in this field, and towards this end, have created a new specialized department for procurement. Procurement is not just another synonym for buying activities in an organization. It encompasses a whole lot of activities involving careful planning and discreet execution of activities in a methodical and efficient manner.

Thus, it becomes imperative for any organization in general, and the procurement division in particular, to develop certain strategies and follow them in the course of procuring the essential equipments such as hardware, software, utilities, accessories and even services.

The primary objective of any procurement strategy in an organization that uses information technology is to reduce the overall costs of procurement, while, at the same time, ensuring that the quality or service is not compromised at any cost. With this objective in mind, every organization depending upon information technology for their business activities puts in place specific strategies for procurement purpose.

Broadly speaking, typical IT procurement strategies include some or all of the following things.

A typical IT organization will be making use of software and hardware. Hardware refers to the computers including the central processing units, monitors, keyboard, mouse, mouse pad and other ancillaries. Software, on the other hand, refers to the programs or applications such as word, e-mail and such other things which are run on the hardware.

The first aspect in IT procurement strategy is to finalize the hardware and software requirements for the organization as a whole. It is not as going to a computer retail shop and pick one computer for use. Taking into consideration the broad objective of the organization, the configuration of the computers, the need for the necessary software and such other things should be clearly finalized and documented. While finalizing the requirement for an organization might look not so important, viewing the requirements from the broader objective of the organization and planning accordingly is very essential from the procurement point of view.

Thus, the IT procurement strategy should concentrate on finalizing the requirements. As part of the strategy, it becomes necessary to assess the cost-benefit analysis.

The second step in IT procurement strategy is finalizing the purchaser for the purchase of the requirements. Pre-selecting a purchaser through tendering process, taking into account the bulk requirement, would be an ideal way. Floating tenders with specific requirement, inviting bids, screening the bids, selecting the purchaser, finalizing the terms and conditions as well as customer service details should form part of the IT procurement strategy.

As part of the IT procurement strategy, all the members of the organization or the team leaders of the departments should be involved in the process, and they should be consulted in every aspect of procurement such that the morale of the team and the members in the organization will be high, because ultimately it is the employees who will be using the equipment in the organization.

Having loyalty with a brand or a specific supplier is not a good IT procurement strategy. It should be the endeavor of the IT procurement head to ensure that the equipment procured for the company not only result in savings, but also be of better quality and reliability.

Comments are closed.