It can be agreed that the world of IT is intricate and complex, and growing more so every day. It is off this thought that IT departments stake their claim that they need to be in charge of technology purchases. They have the technical knowledge to understand the complex systems, elaborate sales channels, and terms and conditions. IT wants ownership of the whole process- from vendor selection, negotiation to implementation, and renewal.
It is not hard to understand why procurement would want to be a key player in the purchasing process either, these purchases are a big investment for companies as a whole. Their priorities are the control expenses and reduce risks. In procurement's mind, IT's approach to purchasing seems undisciplined, this lack of structure and organization is not tolerated, especially as it reflects poorly on the capabilities of procurement.
Despite CXO's best efforts, many have not been able to alleviate these combative conditions. Unfortunately, as IT purchases grow more decentralized and complex, it is inevitable that tensions are only going to rise. This is why we have to strive to resolve this conflict.
This is not to say their have not been strides made by CXO's to bring both parties to the table on amicable grounds. It just has not been too successful. Sadly, tensions will only continue to rise between IT and procurement as purchases get more complex, a bigger price tag, and cover more of the company with one fell swoop. The time is now to lead your company in the direction for change that can make a real difference.
Jon Winsett, CEO of NPI, discussed this very issue in an article "Understanding the Friction Between IT and Procurement" May 2013. He states that placing a sourcing executive directly into the IT department can help facilitate a bridge between the two departments. The executive can learn about the intricacies of IT vendor and contract management all the while teaching the IT department procurement's best practices.
The bottom line? We all have to learn to get along. The right hand needs the left hand. IT needs procurement just like procurement needs IT. This is the only way that cost and risk will be managed and minimized.
It is not hard to understand why procurement would want to be a key player in the purchasing process either, these purchases are a big investment for companies as a whole. Their priorities are the control expenses and reduce risks. In procurement's mind, IT's approach to purchasing seems undisciplined, this lack of structure and organization is not tolerated, especially as it reflects poorly on the capabilities of procurement.
Despite CXO's best efforts, many have not been able to alleviate these combative conditions. Unfortunately, as IT purchases grow more decentralized and complex, it is inevitable that tensions are only going to rise. This is why we have to strive to resolve this conflict.
This is not to say their have not been strides made by CXO's to bring both parties to the table on amicable grounds. It just has not been too successful. Sadly, tensions will only continue to rise between IT and procurement as purchases get more complex, a bigger price tag, and cover more of the company with one fell swoop. The time is now to lead your company in the direction for change that can make a real difference.
Jon Winsett, CEO of NPI, discussed this very issue in an article "Understanding the Friction Between IT and Procurement" May 2013. He states that placing a sourcing executive directly into the IT department can help facilitate a bridge between the two departments. The executive can learn about the intricacies of IT vendor and contract management all the while teaching the IT department procurement's best practices.
The bottom line? We all have to learn to get along. The right hand needs the left hand. IT needs procurement just like procurement needs IT. This is the only way that cost and risk will be managed and minimized.
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 management solution service
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