IT purchasing is a task filled with uncertainty, price disparity and overspending. In an effort to find more objectivity and knowledge about new technology solutions, many IT purchasers are turning to an unlikely source - social networking. Here they are able to benchmark pricing and obtain valuable insights from other IT professionals, which can help them bring more leverage to the negotiation table and optimize purchasing.
But, can social networking really help IT buyers make better purchases? Many say yes, as these survey results from a recent Forrester Research study called "IT Purchasing Goes Social" suggest:
60 percent of IT purchasers surveyed have made decisions influenced by social networks
73 percent have engaged with vendors on a social network
58 percent say that learning from trusted peers is a main reason they use social networking
Other top reasons given by the IT decision makers surveyed include:
To quickly find data
To gain insight to interact with vendors
To reach a broader network
Social networks are starting to realize the value they can provide to IT purchasers through their sites and are even starting to cater to it. One LinkedIn Group, IT Spend Management, offers a platform that lets peers to share helpful information on complicated negotiation details so they can be better prepared.
The biggest challenge for most IT buyers is not knowing if they are overpaying for new technology. Fair market value can be difficult to ascertain when vendors change prices often from one customer to the next. Social networking provides a viable solution by allowing the buyers to connect with others and compare vendor pricing and terms.
The influence of social networking on IT purchases is changing the way companies negotiate for new technology solutions. As long as businesses continue to benefit from the much needed objectivity social networks provide, price disparity and unfair terms may soon be a thing of the past.
But, can social networking really help IT buyers make better purchases? Many say yes, as these survey results from a recent Forrester Research study called "IT Purchasing Goes Social" suggest:
60 percent of IT purchasers surveyed have made decisions influenced by social networks
73 percent have engaged with vendors on a social network
58 percent say that learning from trusted peers is a main reason they use social networking
Other top reasons given by the IT decision makers surveyed include:
To quickly find data
To gain insight to interact with vendors
To reach a broader network
Social networks are starting to realize the value they can provide to IT purchasers through their sites and are even starting to cater to it. One LinkedIn Group, IT Spend Management, offers a platform that lets peers to share helpful information on complicated negotiation details so they can be better prepared.
The biggest challenge for most IT buyers is not knowing if they are overpaying for new technology. Fair market value can be difficult to ascertain when vendors change prices often from one customer to the next. Social networking provides a viable solution by allowing the buyers to connect with others and compare vendor pricing and terms.
The influence of social networking on IT purchases is changing the way companies negotiate for new technology solutions. As long as businesses continue to benefit from the much needed objectivity social networks provide, price disparity and unfair terms may soon be a thing of the past.
About the Author:
Joseph B. Kappernick specializes in helping Fortune 500 companies save money. He recommends that you visit NPI to learn more about IT cost reduction
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