Today, companies approach technology very differently. Digital technologies are increasingly the primary channel through which companies interact with their customers. Investing in technology innovation is now seen as essential for survival. Indeed, technology often defines what business initiatives are possible.
The IT departments of large corporations are gradually moving to this digital-first view and
adopting practices that allow them to work closely with the business to develop digital solutions that improve customer value. Large outsourcing contracts, which often helped companies contain costs at the expense of flexibility, are coming into question; often more agile ways to procure IT services from a wider range of suppliers are favoured. This evolution is requiring nimble IT departments that can quickly gain access to new technologies.
Is IT procurement (ITP) following suit? Are ITP professionals evolving their process and practices to help meet their firms’ appetite for digital innovation? To find out, The Economist Intelligence Unit (EIU) surveyed more than 300 executives with responsibility for IT procurement for a programme sponsored by HPE Financial Services.
The survey reveals almost unanimous acknowledgment among ITP leaders that their functions need to evolve—just 2% of respondents say otherwise.
However, the survey also suggests that ITP executives are still more focused on inward-facing priorities (for example, saving cost on and maximising ROI from IT investments), than on enabling the business to create value by greater use of technology. Sixty-one percent of respondents, for example, say that a chief priority of their IT procurement is controlling expenditure; only 43% cite playing a role in making the business more innovative.
The survey also reveals the most significant challenges facing ITP executives as they work to provide greater value to the organisation: constantly changing requirements of IT and of the business. Thus, to empower the business to use technology in innovative ways, ITP professionals must both prioritise agility and become increasingly attuned to business and technology trends that will help them anticipate fluctuating demands.
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