Author: Chris Cannon

With 66% of companies planning to increase their IT budgets for 2024, nailing your information technology procurement best practices is a must.  

This is particularly crucial as IT spending is under the microscope more than ever, as 84% of companies are concerned about a potential recession coming in 2024.

Having IT procurement best practices in place is a way to optimize cost savings while maximizing each dollar you spend. Every technology purchase needs to be considered for how it impacts day-to-day operations and supports overall business goals. 

Here are three information technology procurement best practices for 2024 to keep your costs in check.  

#1. Clearly Define Goals and Expectations 

The foundation of your technology procurement strategy should be clear goals and expectations. This helps ensure everything runs smoothly, budgets are achieved, and all your stakeholders are on the same page.

Your goals should consider all potential impacts, including the budget, long-term plans, ease of adoption, and more.   

For example, technology purchases are sometimes made with the expectation that the ROI will be worth the growing pains that will come with adoption. However, this approach isn’t particularly strategic.   

Reengineering your technology stack or developing workarounds can create more problems than the ones you started with. Any new technology should drive efficiency and support business goals, not create needless complexity.

 

#2. Ensure You Have a Comprehensive and Accurate Inventory 

Every dollar counts as the cost of doing business rises, and many companies experience shrinking profit margins. Gartner predicts that worldwide IT spending will increase by 8% in 2024, so if you are already trying to contain costs, start by figuring out what you already have.  

Procurement and IT teams should review inventory continuously to ensure they aren’t paying for unneeded services or making unnecessary purchases.  

Organizations often need to pay more attention to the true cost of holding on to inventory, as you may find that specific tools or tech will not be viable in the future.  

Having a complete inventory documented can help you determine what you are really spending. 

With an ongoing plan for inventory in your information technology procurement best practices, you’ll be better positioned to plan and forecast for current and future business needs.  
 

#3. Be Prepared to Negotiate and Counteroffer 

According to Gartner, two in five IT leaders regret their technology purchases due to overpriced fees or unfavorable terms 

All technology deals have room for negotiation and counteroffers. However, many times, it’s tricky to know where to start, and that’s why benchmark data and knowing what to ask for is essential.  

Benchmark data will provide insight into current market rates, common terms, and more so you can decide on what is being offered.  

Working with a third party with benchmark data and preexisting vendor relationships can help you get the best rates and terms.  

Information Technology Procurement Best Practices: Next Steps for 2024  

By implementing these information technology procurement best practices for 2024, you’ll be best positioned to weather the rising costs of doing business while ensuring you’re getting the best possible technology at a competitive price.  

Want to learn more about how you can contain costs and stay on budget with your procurement in 2024? 
 
Download our Strategic Sourcing Guide – From Budgets to Business Results: Identifying and Avoiding Costly RFP Mistakes to discover nine mistakes to watch for when running your technology RFP process.