IT procurement challenges uncovered

John Matthews opens the conversation with a focus on the use of open-ended questions in RFP processes, and how they're a great way for organisations to consider smaller innovative vendors who provide more focused solutions than the behemoth-sized providers.

Matthews further emphasizes the need for procurement to add value and be influential, while also recognizing that they are not in control of the budget. Matthews also highlights the importance of identifying strategic stakeholders, high impact stakeholders, and core stakeholders in IT projects.

One big issue is that people think procurement controls decisions. Matthews says that's not quite right. Instead, procurement should influence decisions positively by showing its value. When this isn't understood, it can slow down projects and make them lower quality.

Another problem is identifying and talking to the important people who make big decisions. Huw Price says it's crucial to understand their needs clearly and talk to them in simple terms. This helps everyone be on the same page and work towards the same goals.

Huw continues by describing the vague requests for IT services that often cause delays and extra costs. Matthews suggests having clear talks about all the costs involved from the start. This way, everyone knows what to expect and can plan better.

Additionally, performance-based fees are proposed as an alternative payment model to incentivize timely and efficient project delivery. This approach shifts the focus from time and materials to outcomes, encouraging vendors to prioritize performance and value creation. To sum up, by fixing these issues through better communication, talking to the right people, and trying new buying methods, companies can make buying IT services for software smoother and more effective.

Watch the full episode to learn more!