Understanding IT Procurement and Sourcing
In today’s digital landscape, technology is present almost everywhere you go. Although using the right technology is vital for some businesses, it can sometimes be hard to know where to start. To gain a deep understanding of that, it is important to learn about the processes involved in technology acquisition. IT procurement and IT sourcing are two fundamental processes in this regard. They have technically different definitions while sometimes they are used synonymously.
CAB IT has a strong background in implementing these two processes for many companies from small start-ups to large corporations. We have been providing excellence in IT services since 2004, with a dedicated team. Our approach is to find the best solution for each client with different needs. Contact us today to learn more.
In this blog post we will explain the differences between IT procurement and IT sourcing and discuss how these processes can help businesses.
What is IT Procurement?
Several processes are involved in IT procurement, including identifying business needs, selecting appropriate solutions, and making purchases. It has three main steps, finding, acquiring, and managing technology resources for a specific organisation.
Finding: Identifying the specific technology requirements and understanding the conditions of the company. The most important factor in this step is needs assessment.
Acquiring: The purpose of this section is vendor selection. This part consists of two main actions; First, researching and finding potential suppliers based on accurate information, and second, negotiating terms and conditions to secure the best deal.
Managing: After finalising previous stage, it is significant to have the full support and monitor the entire process.
Procuring IT goods refers to the acquisition of physical items that are needed for a business, such as computers, keyboards, and mice. In the procurement of IT services, software maintenance or software debugging are examples.
Explore our procurement solutions >
What is IT Sourcing?
IT sourcing is the process of determining the effective way to acquire the technology needed to support an organisation. In IT sourcing there are different strategies, such as purchasing equipment and services outright, leasing them, or outsourcing certain IT functions to third-party providers.
If companies prefer to develop and manage IT sources internally, they use in-house sourcing. For example, hiring a managed service provider (MSP) to handle IT support falls under this category. When they use an outsourcing strategy, contracting third-party providers is important. Another approach is cloud sourcing, which means utilising cloud-based services and infrastructure such as Microsoft Azura or Google Cloud for storage and computing. Finally, a business can combine various strategies to meet its goals.
Budgets, IT needs, and overall business objectives can influence companies to decide on the best strategy. And choosing the right IT sourcing strategy can enable a business to reduce costs, improve efficiency, and enhance its competitiveness. It can also help them keep up with technological changes and adapt to new business requirements.
Find more about internal vs outsourced IT department >
Learn about the benefits of outsourcing IT support >
How Can IT Procurement and Sourcing Help Businesses?
Businesses should continually adapt technologies to remain competitive and secure. However, handling the process acquiring this technology can sometimes be challenging. This is why understanding IT procurement and IT sourcing is essential for businesses.
Although IT procurement and sourcing are different, they often work hand-in-hand. These two processes offer several benefits for businesses, such as:
Reducing costs: Communicating and finding the effective method for negotiation can assist organisations in securing a better deal and optimising sources. This process promotes cost efficiency.
Access to latest technology and expertise: Accessing third-party vendors and specialists ensures that businesses have advanced technology and expertise at their disposal.
Flexibility and scalability: Using various sourcing options like cloud services helps businesses scale their IT resources up or down based on demand.
Focus on strategic initiatives: Outsourcing IT tasks allows internal teams more time to focus on core business activities and strategic initiatives.
Improved performance: Acquiring reliable technology can boost overall system performance, which in turn can influence employee productivity.
Explore our procurement solutions >
IT Procurement with CAB IT Solutions
Here at CAB IT we are a third-party provider who work with a range of IT hardware and software solutions. Businesses can simplify their process, gain high-quality technology, and expert advice.
We can handle everything from identifying business needs and their conditions to communicating with vendors and managing purchases. We offer the latest in IT hardware and software, including servers, networking equipment, cybersecurity solutions, and more to make productivity for businesses.
Whether you are after in-house development, outsourcing, or choosing the best services such as cloud solutions we can help you make the right decision. With an informed decision, you can ensure everything aligns with your goals and budgets. Additionally, there is ongoing support and maintenance beyond procurement, including regular updates, troubleshooting performance monitoring. All our services allow companies to adjust IT resources based on changing demands, providing opportunities to grow quickly.
Get in touch with us now, and read the article below, to find out how CAB IT can boost your productivity and advance your company.
Telephones / VoIP
CAB IT Connect is a VoIP telephone system hosted within your own private cloud and designed to integrated.
Business Continuity
Recover critical data quickly Should you experience a server failure. Yhe SIRIS can have your Windows or Linux environment and data recreated in minutes from the local device or the Datto Cloud.
Office 365 / Cloud
Office 365 is a cloud-based service hosted by Microsoft that brings together familiar Microsoft Office desktop applications with business-class email, shared calendars, instant messaging (IM), video conferencing and file sharing.
Cyber Security
According to over 1,700 IT service providers, the lack of cybersecurity awareness amongst employees is a leading cause of a successful ransomware attack against an SMB.
Secure Destruction
Most businesses think GDPR only refers to personal data used for marketing and sales purposes, but…
The GDPR definition of data processing is wide, and a major part of the GDPR includes the erasure and destruction of personal data.
Procurement
Expert IT procurement plays an important role within the provision of IT services, especially as IT budgets are constantly under scrutiny and purchase decisions need to be justified.
Managed Networks
Modern offices seek a network infrastructure solution that intelligently combines voice and data networks. In order to optimize the performance of their converged network, it requires visibility, control and manageability…maximizing the productivity of users across the network.
Asset Management
As a key requirement of GDPR compliance for every business, it is important that the management of your IT Assets isn’t an admin task that is overlooked.
Web Design
We work with you to design and build a professional website that will truly represent your brand.
IT Support
We provide very flexible IT Support working effectively through one of our completely customised IT Support Packages.
Internet
Through a variety of connectivity partners CAB IT Services can offer a huge range of business connectivity services.
Wifi
Our Wi-Fi System is a scalable enterprise grade access point solution designed to be deployed and managed within any environment.
Network Infrastructure
In partnership with carefully selected third parties we provide network infrastructure data cabling installations in Bristol and throughout the South West.
