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IT Managers Struggle to Optimise their Role to Inefficient Purchasing Processes

Research by IT procurement specialist, theitindex.co.uk, has found that IT managers are finding their roles are being marginalised as a result of spending too much time on IT buying and administration tasks.

And the survey has led theitindex.co.uk to conclude that with better tools and processes; IT managers can fulfil a more strategic role without having to waste time and money on lengthy or inefficient procurement.

In the survey of over 250 IT managers, theitindex.co.uk found that nearly 20% of respondents’ time was spent on procurement.

In addition, theitindex.co.uk found that 78% of respondents specified and procured, whilst 13% specified only and 9% procured only. This suggests that a small number of IT managers are tasked with procuring only without the power as a specifier, which is both costly and inefficient.

Of the research pool, over 50% stated that price and 79% stated availability on product were of high importance and that much of their procurement time was spent conducting activity to that end.

theitindex.co.uk has found previously that for procurement purposes, many IT managers conduct lengthy ring rounds to numerous suppliers to secure price and availability details before conducting timely manual comparisons to achieve the best deal.

Peter Robbins, MD of Probrand and theitindex.co.uk, explained: “We have found that the majority of IT managers spend an average of one day a week ringing round and conducting manual comparisons. Often, they will then approach an existing contracted supplier and negotiate what they believe is the best deal based on the loose intelligence they have gathered.

This is both inefficient and costly and often does not secure the best priced product within the fastest time. This is why 40% of managers’ time is expended on procurement and administration.

Peter Robbins
Managing Director of Probrand

“A more efficient, best practice approach to the procurement process could in fact add value to the bottom line, so increasing the reach of a managers IT budget and job role. Such an approach would save vast amounts of time that could otherwise be spent planning, establishing strategies, implementing and handling procedures and genuinely leading the IT department towards the provision of an efficient operating infrastructure.

“It is readily agreed that IT should form an integral part of the modern business strategy. But how are IT managers expected to conduct the necessary activities to leverage IT’s importance on the corporate agenda when they are restricted by time expended on procurement and administration? A best practice approach to procurement would undoubtedly unlock the true potential of an IT managers role and deliver best value IT at the same time.”

(2007)

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The IT Index is based on Mercato technology.