The following are the IT procurement key issues:

1. Changes in technology:

Since technology is growing every day at a certain pace, it has become hard for IT procurement to depend on or choose the technology that will sustain for a long time. The IT procurement needs to obtain a technology that will leave a positive effect and will benefit both parties.

 2. Outdated procurement process and rules:

IT involves a clique of products, support services, and consulting to fit in the best terms and prices. Understanding the characteristic of the product is essential to gain consistent and better results. The outdated process and rules for IT procurement make it hard to operate. They should be reviewed and replaced with the more updated ones.

 3. Lack of expertise:

Usually, an organization has a separate department that looks after the procurement. The organization also grants a sub-department under them for better running of the procurement process. IT procurement is managed by experts as it is a critical area. Sometimes due to the lack of expertise, it became hard for the organization to deal with risk and the situation became worse.

 4. Less involvement of the IT procurement department:

You might notice this when the manager and accounts department is dealing with procuring items. The procurement department’s role is to develop contracts, purchase terms, and conditions. The IT procurement deals with the IT work in the procuring process. It is from the very start till the end but the IT team’s less involvement leads to a faulty result of the process.

IT procurement negotiation strategies:

You can be a skilled negotiator but need to count all possibilities which can help to bring out the best. Try to know the demands of the supplier and process accordingly, while keeping your goals in mind. You should uplift the interest of the supplier. Try to work on both parties’ benefits, so that it becomes easy to negotiate. You need to do research to choose the correct supplier and to create a healthy negotiation. The supplier will be also prepared for the negotiation that is going to take place in the future and the right approach will build good supplier relationships. The technician’s assistance gives room for positive negotiation. The IT procurement department has a plus point as they have technical knowledge. The IT procurement tries its best to protect its interest by stopping all loopholes that can bring them into less advantageous positions in the negotiation. You need to be a very active listener that can understand the negotiation statement and tackle them within a second with some sense. During the testing stage, these skills help a lot.

Summing Up!!!

IT procurement is not always considered as the standard procurement but it needs to be taken care of with a serious note. The expertise of IT can prove to be the Ace card in the entire procurement process.

Hope so this article was productive and gave you a clear idea about the major issues in IT procurement along with the best ideas for negotiation.

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