5 IT Procurement Best Practices

One of the most important decisions companies make is where, how, and from whom to source their IT needs. From the strategic acquisition of tech to securing human support, finding the right tools to thrive is critical for long-term business success. But aligning these investments with organizational objectives isn’t always easy. Here’s what to know about IT procurement best practices and how you can select the right resources while optimizing costs.

IT PROCUREMENT BEST PRACTICES ALL BUSINESSES SHOULD KNOW
In a world where reliance on technology is growing by the day, IT services have never been more important. For small businesses especially, technology plays an integral role in operations. 95% of small companies use at least one tech platform, and 87% report increased efficiency due to these platforms. But no matter your company size, you can benefit from adhering to a few IT best practices.

1. Conduct a Needs Assessment
First, it’s important to understand what your business actually needs. Get an overview of your company’s current technological landscape and identify gaps that need addressing. For example, if you find that certain hardware is outdated or redundant, make plans to replace it.

Then, consider your future needs. What are your strategic goals, and how can technology be used to support them? Engage with key stakeholders to discuss upcoming projects, expected challenges, and growth plans. That way, you can ensure the longevity and scalability of your procured tech.

Once you’ve gathered your findings, create a detailed report that outlines the current state of your IT program, as well as any needs and future requirements. Prioritize needs based on short- and long-term impact.

2. Build Strong Vendor Relationships
Fostering relationships with vendors is one of the most crucial — if not the most crucial — elements of a good IT procurement strategy. Ideally, you will work with your chosen vendor for many years, and so you want to get off on the right foot and ensure they understand your needs from the get-go.

A VRM (vendor relationship management) platform can help. Just as CRM tools are important for managing customer relationships, VRM systems make it easy for companies to communicate and coordinate with their IT vendors. However, to be successful, a VRM platform needs to be open and accessible to external stakeholders.

3. Perform a Total Cost of Ownership (TCO) Analysis
When choosing IT services, don’t just think about the upfront costs, but the TCO. This includes all costs associated with the product or service over its lifecycle. Plan for costs around installation, maintenance, training, and more.

To determine your TCO, start by calculating the initial costs, which will probably include the purchase price and setup fees. Be sure to account for the costs of training employees to use the new technology effectively.

And don’t forget energy consumption. While some hardware may seem cheaper at first, it may result in higher electric bills down the road. Assess the energy efficiency of the products and include these costs in your analysis. Think also about future upgrades and scalability.

4. Prioritize Security and Compliance
Cyber threats are growing more sophisticated by the day — penetrating all facets of business. In fact, the average annual cost of cybercrime worldwide is expected to hit $23 trillion in 2027, up from $8.4 trillion in 2022.

Needless to say, security should be a top priority when procuring IT solutions. Thoroughly evaluate products for their security features. Look for solutions that offer robust encryption and MFA. Compliance with industry regulations is equally important. Make sure products and services meet requirements like GDPR and ISO.

5. Ensure Effective Project Management and Implementation
Even the best IT procurement plans can fail without proper execution. To make sure you’ve got everything in place, gather a dedicated project team that includes representatives from all involved departments. This team will oversee the entire implementation process, from planning to execution and review.

You should also create a detailed project plan that defines the scope of the project. It should include timeline, milestones, roles, and responsibilities. The goal is to get all relevant parties onboard and help them understand exactly what they’ll be doing to move the project forward.

Communication is key here. Be open to questions and feedback, promptly addressing any concerns that project members have. You may not get it right the first time, and that’s okay — the best projects often require trial and error.

WHEN IN DOUBT, ASK THE EXPERTS
With time, research, and planning, most businesses can successfully procure IT services on their own. However, if you’re struggling to find and implement new solutions, there’s no shame in seeking external help. Here are some of the benefits of outsourcing IT procurement:

• Access to Specialized Knowledge: Procurement professionals are intimately familiar with the latest technologies, market trends, and best practices, helping clients make informed decisions and secure the best deals.
• Cost Savings: External procurement specialists often have established relationships with vendors and can negotiate better prices. Another great thing about outsourcing is that it reduces the need for a large, in-house procurement team, thereby cutting staffing costs.
• Improved Efficiency: What better way to save time than by having someone else do your work for you? Very often, these services pay for themselves multiple times over — think about how much more revenue your teams could generate by focusing on more pressing tasks.
• Minimized Risk: Procurement specialists have a thorough understanding of regulatory requirements and compliance standards, helping organizations avoid legal pitfalls and security vulnerabilities.

With a team of experienced professionals by your side, you can find quality IT solutions that fit your needs and budget without having to organize an IT procurement strategy in house.

ADHERE IT PROCUREMENT BEST PRACTICES WITH TSP
Sticking to IT procurement best practices is easier said than done, which is why it can be helpful to outsource the process. At TSP, we offer custom, flexible IT services and talent solutions. No matter your needs, we can find the best options for your organization while adhering to procurement best practices. Get in touch with us today to see how.