Companies Are Taking a Step-by-Step Approach to Digitising IT Procurement

At Markit we are seeing growing interest from large international companies who want or need to save time and money on their IT purchasing requirements and processes. Indeed, most companies have, or should have by now, some form of digital procurement strategy to manage their IT spend in action or at the preparation stage.

This makes absolute sense when we consider the fact our 2,000+ loyal/international clients are seeing savings of between 5-25% per annum on an ongoing basis.

Strategy is key of course but implementation-planning and testing are vital too, to ensure that future IT purchasing is simple to execute and provides enough transparent data to evaluate and enhance its performance on an ongoing basis. We understand that the procurement function’s commitment and desire to produce productivity ROI and concrete savings is balanced by time and safety factors. It’s important to be able to move at speed and see a near-immediate return, whilst ensuring corporate compliance etc. This is one reason why Markit clients pay zero set up or licensing fees, zero integration fees and zero “consultancy” fees – we have a long-term view that if we can produce savings almost immediately and maintain them, and if the system is simple to use supported by excellent service levels then clients will be loyal. It’s more than a “view” actually, it’s a fact. We have the results to prove it. For example, a typical result: An international engineering company reduced their IT supplier count down from 130 to 1 (Markit) and has been using our system for more than 5 years to save an average 14.5% on product prices (in year one) and 10-14% per annum thereafter plus save thousands of hours from reducing their purchasing process time.

Despite the evidence that we, or other leading solution providers might offer to “win a client”, it’s often prudent (or even mandated internally) to start small and test in one country with a limited spend before rolling out the whole IT category in every country where you operate. This inch by inch approach ensures confidence and maximum stakeholder buy-in as evidenced savings successes appear and grow. Many of our clients have adopted this approach before taking full advantage of the Markit system to fully automate their IT device purchasing internationally. Others have jumped in and rolled out quickly. There are advantages to both approaches of course and whilst we are geared to start delivery of savings quickly, we highly respect the cautious approach too.

Change doesn’t happen overnight but a step-by-step (or inch by inch) approach with experienced IT procurement savings partners is a sensible way forward. Sadly, not all category procurement solutions are as friendly as Markit to the phased approach due to significant “up front” setup, licensing, consultancy and integration costs which can slow down or even kill off the chances of successful collaboration.

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Companies Are Taking a Step-by-Step Approach to Digitising IT Procurement