CBRE - Gaining control over CAPEX and OPEX expenditure in IT procurement

Markit Forum 2023 delegates were treated to a seriously deep, and expert, dive into the world of expenditure control by Robert Maliszewski, Head of CEE IT FTS at CBRE (Worldwide Real Estate Services Leader).

There is no way this short post can do justice the volume of details shared, so we strongly recommend that you view the video presentation for yourself.

Initially Robert explained CAPEX vs OPEX and how they differ & importance for CBRE, plus how CBRE procures / approaches both CAPEX and the OPEX lifecycle issues and challenges, and where Markit fits in the picture of securing beneficial outcomes.

CAPEX spending is quite stable and managed globally by the IT function, with an approved annual budget. Fixed global prices are negotiated with vendors. Any currency fluctuations are dealt with at the time of order to avoid complications with the finance function.

Hardware unification on a global scale produces significant savings as does CBRE’s “pay per click” purchasing model for certain types of software, including imaged software installed on their laptops.

IT does not touch the orders which go from the user via Coupa, to the line manager approval and then onwards to vendor e.g., Markit and finally for delivery to the user.

OPEX spending is set to rise 300%. OPEX spending is managed by the individual CBRE businesses.

Employee spending is controlled in the sense that IT buys everything (for internal needs) and holds stock. Employees can access a set of standardised products (including laptops, headsets, AV devices etc.) through a Coupa-integrated Markit IT products catalogue.

CBRE business have access to a larger second Markit catalogue where they can source and buy a wider range of products on behalf of CBRE clients.

With OPEX spending monitoring costs and availability are key areas.

When Robert addressed the CBRE IT procurement lifecycle he stressed the importance of hardware unification, and that communication (through hardware standards guidance) is key.

Watch the full CBRE presentation on YouTube now.

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Read the main Markit Forum 2023 Report or check the other individual client presentation reports from:

BCG (Boston Consulting Group) – Overcoming challenges of the global partner model in IT procurement
Hurtigruten Group - Steering procurement from local to global in a 130-year-old cruise tourism company
Danone - Building USERS’ independence in the purchasing process
Cabot - Digital IT procurement and the benefits of punchout

Zoetis - Vendor relationship management

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CBRE - Gaining control over CAPEX and OPEX expenditure in IT procurement