In our last post, we discussed some of the warning signs of IT failures, along with suggestions for identifying and correcting problems. However, there are times when things just can’t be fixed. Servers, printers and PCs have moving parts that wear out. Applications and operating systems can become buggy, slow or reach end-of-support status. There comes a time when you simply have no choice but to invest in new technology.
IT purchasing can be complicated and costly, however. Without a well-defined IT procurement process, organizations often make decisions they come to regret. A 2016 study by the Genpact Research Institute found that almost 70 percent of IT purchases either didn’t meet the functional goals of the projects or failed to deliver the expected return on investment.
Standardizing IT procurement with a strategy based on consistent, repeatable processes can minimize the risk of such disappointments. A regimented approach reduces sourcing errors, improves efficiency and helps ensure that purchases match requirements. It can also boost the bottom line — research from Bain & Company suggests that companies can cut purchasing costs by as much as 15 percent with better sourcing strategies and processes.
Standardization ensures consistency through the entire procurement process — identifying needs, detailing product specifications, establishing a budget, researching potential suppliers, evaluating product options, and negotiating contracts and service level agreements. Ideally, organizations should assign purchasing authority to an individual or committee that will work closely with IT to ensure that all purchases align with standards.
A formalized purchasing authority can be particularly important for smaller businesses that typically take a more impromptu approach to procurement. In smaller businesses with an informal organizational structure, employees often just pick up a phone and call suppliers when a need arises. Such ad hoc procedures can result in overpaying for solutions that don’t work properly.
Despite the benefits, formal procurement processes can be difficult for SMBs. They don’t have the need or budget to hire a full-time procurement specialist, and other staff members have neither the time or training to do the job properly. That’s why many SMBs count on a managed services provider (MSP) to gain cost-effective access to procurement expertise.
Through their strategic partnerships, MSPs have established relationships with competitive suppliers, along with deep knowledge of their solutions portfolios and access to discount purchasing. An MSP can also guide you through the difficult process of evaluating licensing options, service-level agreements and other contract details.
Beyond purchasing, an MSP can also introduce high levels of consistency and predictability to the implementation of IT solutions. An MSP will typically have a standardized approach based on proven best practices and repeatable processes that have been successful in the past. This consistency can eliminate unnecessary variations that waste time, effort and money.
An MSP can also improve IT stability and predictability through deep knowledge of your environment. Familiarity with hardware configurations, software versions, critical dependencies and more help ensure that new hardware and software are compatible with the existing environment.
Repeatable processes ensure quality through consistency. The risk of human error is reduced, and processes can be fine-tuned over time based upon knowledge gained from previous projects. From selection to implementation, Verteks offers procurement expertise that can help you acquire reliable technology with predictable expenses. Give us a call to learn more.
