Understanding Why Relationships are at the Heart of Progress between Procurement and IT
The relationship between IT and Procurement holds significant potential for the advancement of the organization as a whole, but has historically had challenges associated with its effective navigation. Building alignment with the technical needs and knowledge coming from IT and the strategic thinking and value-awareness of procurement requires a willingness to meet half way in terms of IT related subject matter. Procurement also must demonstrate positive value in order to build on their credibility, be that in efficiency, in impact to the bottom line, or other metrics in between.
ProcureCon’s 2019 CIO-CPO study revealed that in most cases IT sourcing is becoming a joint responsibility between IT and procurement, with interactions between the two groups typically concentrated around sourcing projects as needed1. Taking that relationship further through the establishment of IT procurement subgroups, the hiring of procurement staff with IT knowledge, or a combination of these strategies has become one off the default tactics for enhancing the inter-departmental relationship.
In the next installment of our CIO-CPO study, we will seek to understand both how these transformations are continuing, as well as what these groups need from each other in terms of relationship-based mutual development. We will learn from professionals on both sides what has or has not worked for them as they solidify their approaches to strategic development, the impact this has had on their departments, and what the future looks like as IT procurement continues to grow as a discipline.
Read the full report: Available July 2020