The Future of Technology Sourcing and Procurement — Part 2: Administrative Focus Inhibits Strategic Involvement

The Future of Technology Sourcing and Procurement — Part 2: Administrative Focus Inhibits Strategic Involvement

This IDC Perspective, written for CIOs and senior procurement executives, explores the challenges of aligning procurement organizations and their processes with the business objectives of rapidly transforming enterprises. Technology sourcing and procurement organizations are more focused on administrative procurement activities than strategic sourcing initiatives, according to IDC's 2018 U.S. Future of Technology Procurement Survey, even though strategic sourcing is a critical need within enterprises. Furthermore, outdated processes promote the focus on administrative duties, diverting engagement from strategic objectives. As a result, many key enterprise digital transformation initiatives are unsupported — or worse yet, impeded — by procurement organizations. The document provides specific advice to CIOs and procurement leaders seeking to address these challenges."The number 1 procurement organization transformation challenge faced by procurement executives today is how to move their teams from tactical procurement centers to strategic sourcing partners," says Aaron Polikaitis, vice president of research, IDC's IT Executive Programs.

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Executive Snapshot
Situation Overview
A Real-Life Example
We Have a Deal
A Failure to Communicate
We Can Do Better
Isolated Incident or Common Industry Practice?
Administrative Tasks Leave Little Time for Strategy
The Watermelon Effect
Advice for the Technology Executive
Addressing the Challenge
Conduct a Critical Self-Assessment and Benchmark
Review Outdated Processes
Focus on Business Results
Measure Value, Not Savings
Outsource Administrative Tasks
Learn More
Related Research
Synopsis

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