The IT department claims they are the only ones that can navigate the purchases of complex systems- which lets face it, is anything that has to do with IT. Due to the needed technical know-how for understanding the purchase and the elaborate sales channels and terms and conditions, IT wants ownership of the entire process- from vendor selection, negotiation, to implementation, and renewals.
When digging deeper, it is true that IT has the information base needed to make the informed decision on the product. They have the training and expertise in this department to make the best informed decision.
While CXO's have made valiant efforts, they have fallen shy of the mark and have not been able to mediate the strife between IT and procurement. The direction that our global market is moving, this tension has to be resolved, because it is not going away. IT and procurement are only going to have to work more and more together as IT purchases grow more decentralized and complex.
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.
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.
When digging deeper, it is true that IT has the information base needed to make the informed decision on the product. They have the training and expertise in this department to make the best informed decision.
While CXO's have made valiant efforts, they have fallen shy of the mark and have not been able to mediate the strife between IT and procurement. The direction that our global market is moving, this tension has to be resolved, because it is not going away. IT and procurement are only going to have to work more and more together as IT purchases grow more decentralized and complex.
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.
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.
About the Author:
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
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