A few years ago, technology procurement leaders focused on minimizing expenses and reducing risks for their company. However, with the rapid advancements of cloud services and the nearly complete shift to digital by business units, they must now find ways to keep customers, improve profits, and drive innovation to be at the forefront of their industry.
With all these developments, IT procurement has become more critical than ever. It helps organizations stand out from their competitors, especially now that everyone is accessing technology through cloud services. To make sure your company is on top, here are three trends to watch out for in 2021:
– Learning Brand New Skills to Future-Proof Your Company
2020 has marked a year of whirlwind change for everyone, which has underscored the importance of being adaptable to change. It has also highlighted the need to diversify skillsets to future-proof your organization, as the onslaught of COVID-19 has sunk businesses that weren’t ready to adapt to new guidelines. With digital transformation quickly taking over many industries, it has generated a complex vendor system that now requires skills beyond what most teams have.
Technology vendors typically focus on specific markets and partner with established businesses and governments, leading to even more industry-specific hubs. As such, you’ll have to understand your company’s changing needs to acquire the right IT products and services. IT procurement can help you achieve your business goals, but you’ll first have to acquaint yourself with the dynamic landscape and how it will look like in the next year.
– Anticipating Indirect Spending
Non-IT companies have ramped up their technology spending, which is expected to continue in 2021 and beyond. Technology procurement leaders are expected to spend even more, but they’ll need to practice diligence and transparency in the procurement process. Otherwise, this could pose significant risks to businesses, as these leaders’ indirect spending is believed to surge to 60 percent next year.
However, procurement leaders may struggle to negotiate and buy technology for units like marketing and human resources. The issue is that they often do not know enough about the company’s services and products. This lack of knowledge can lead to enormous risks thanks to ineffective contracts, so procurement leaders must educate themselves to take care of the buying process without any problems.
– Preparing for Risks
2020 has demonstrated the many possible scenarios—and the resulting consequences—that can happen. The year had already started precariously with sharply heightened tensions between the United States and Iran, but COVID-19 swept the world and took center stage as the most pressing issue to solve. In the middle of so many uncertainties, it has become a priority to prepare for the unexpected and manage all risks.
Prioritizing risk management will be essential in 2021, as the pandemic has continued to upend businesses all over the world. Complying with legal standards is the bare minimum; ensuring that your organization is transparent in its procurement is the safest approach to take, as any information gap can quickly lead to scandal.
As the world is slowly moving forward, organizations must stay relevant and updated through IT procurement, thanks to the new vaccines. By watching out for these three trends, your company can prepare itself for everything that’s to come.
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