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Who Own’s IT Procurement; The Struggle Between IT And Procurement

By Joseph B. Kappernick

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.

No one department is more right than the other. They both play a vital purpose in this processes, we just need to define expectations and set regulations.

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.

It spending is only going to keep growing. So we need to open up the lines of communication and support collaboration between IT and procurement. This is the only way that expenses will be managed and risk reduced. Fortifying this relationship is the way of the future.

Joseph B. Kappernick works with companies to help them reduce their logistics and shipping costs. Please visit NPI to learn more about logistic vendor expense management

Article kindly provided by UberArticles.com

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Article Citation
MLA Style Citation:
Kappernick, Joseph B. "Who Own’s IT Procurement; The Struggle Between IT And Procurement." Who Own’s IT Procurement; The Struggle Between IT And Procurement. 20 Apr. 2014. uberarticles.com. 25 Jul 2014 <http://uberarticles.com/business/management/who-owns-it-procurement-the-struggle-between-it-and-procurement/>.

APA Style Citation:
Kappernick, J (2014, April 20). Who Own’s IT Procurement; The Struggle Between IT And Procurement. Retrieved July 25, 2014, from http://uberarticles.com/business/management/who-owns-it-procurement-the-struggle-between-it-and-procurement/

Chicago Style Citation:
Kappernick, Joseph B. "Who Own’s IT Procurement; The Struggle Between IT And Procurement" uberarticles.com. http://uberarticles.com/business/management/who-owns-it-procurement-the-struggle-between-it-and-procurement/


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