IT and telecoms
IT and Telecoms are fast-moving areas in which category-specific procurement expertise adds tremendous value. More so than in most categories, there is a risk that inappropriate or inefficient technology is being procured.
Other potential sources of sub-category complexity are numerous and diverse, for example in many sub-categories, unit prices tend to reduce over time by varying degrees. In some areas, multiple personnel across the business can hold relationships with the same suppliers. Total or full-life pricing can often be difficult to understand and / or compare vs. alternative options.
IT and Telecoms sub-categories include:
- Hardware purchases, support and maintenance
- Software purchases, support and maintenance
- Outsourced services
- Implementation projects
- Managed services
- Fixed and mobile telecoms
- Data and network services
- On, near and off-shoring IT service rates
Some of the challenges we typically find in this area include:
- Aggregating spend with providers across the business
- Getting buy-in from various stakeholder groups
- Determining the true requirements vs. 'nice-to-haves' for initial purchases and on-going support
- Asset management
- Understanding the true costs (particularly for managed services)
- Drafting and implementing contracts with sufficient flexibility
- Ongoing monitoring contracts both operationally and commercially