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.
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.
On the other hand, procurement has a vested interest on the fiscal side. They are the number people. Their main concerns are the control on expense and the reduction of risk. To procurement, IT's procedure lacks discipline, structure, and organization. This they can not tolerate, largely as it reflects an ill-managed procurement department.
They are both right, and they are both wrong. The one needs the other to make it work. Defining expectations and setting regulations is a start.
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.
The bottom line? We all have to learn to get along. The right hand needs the left hand. IT needs procurement just like procurement needs IT. This is the only way that cost and risk will be managed and minimized.
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.
On the other hand, procurement has a vested interest on the fiscal side. They are the number people. Their main concerns are the control on expense and the reduction of risk. To procurement, IT's procedure lacks discipline, structure, and organization. This they can not tolerate, largely as it reflects an ill-managed procurement department.
They are both right, and they are both wrong. The one needs the other to make it work. Defining expectations and setting regulations is a start.
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.
The bottom line? We all have to learn to get along. The right hand needs the left hand. IT needs procurement just like procurement needs IT. This is the only way that cost and risk will be managed and minimized.
About the Author:
Joseph B. Kappernick specializes in helping Fortune 500 companies save money. He recommends that you visit NPI to learn more about IT cost reduction service
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