Gartner recently released its annual projections for worldwide spend for the next two years. Global IT spend is expected to rise 4.1% in categories including software, hardware, IT services, and telecom services. This is a jump from the 2.1% increase that occurred in 2012. Telecom services are expected to be the main spend category contributing to the 4.1% global IT increase. Fixed voice services are predicted to diminish while mobile data services are expected to increase. Gartner also predicts that data integration tools, database management systems, and supply chain management are going to grow.
When best-in-class companies are looking to spend money in these categories, they research and identify quality services /products at rates that afford the best value. As budgets increase to allow for growth in these areas, it is important to control wastage and eliminate purchases of overpriced products or those products that produce no quality benefits. It is essential for Procurement and IT to communicate effectively and to establish a wants vs. needs list so that technology spend is first allocated to those projects and products that are necessary to the organization’s central goals.
Through my work in telecom, I have learned that it is easy for companies to lose track of their expenses and not follow up with telecom purchases/services to ensure that any negotiated savings were actually realized. In order to source appropriately, Procurement groups must not only chose the appropriate products/services, but they must follow up on these services to ensure that billing errors are not occurring.