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.
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.
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.
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.
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.
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 works with companies to help them reduce their logistics and shipping costs. Please visit NPI to learn more about logistic vendor cost reduction
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