IS Business Systems Software Category Procurement Intelligence Report

Several macro changes in the dynamics of overall Specialist Software and Hardware as well as IS Business Systems Software procurement trends are poised to change the business practices and procurement thumb rules. Rise in the cost of certain essential assets and supplies required to deliver IS Business Systems Software is making a significant addition to the supplier's overall expenditure. This could have an inflationary impact on buyer's procurement expenditure in the IS Business Systems Software market.

Stringency in the regulatory norms pertaining to data protection and cybersecurity has increased compliance and security burden on suppliers. These additional costs have a potential to drive marginal increase in prices across the key geographies.

In a bid to differentiate themselves in an overcrowded technology space, suppliers are now focusing on creating industry-specific specialized products. Buyers see this trend as an opportunity to procure more targeted solutions and are developing internal capabilities to identify and leverage innovations in the supplier base.

Category managers need to take note of the potential of these developments and reassess the changes required in their procurement practices.

It has become imperative for category managers to remain as agile as possible in terms of their procurement practices. However, it is not always easy to quickly spot and implement alternative practices in a category like IS Business Systems Software. To help quick decision making, this report advises on several procurement best practices that have worked well for category managers.

For example, Transferring to a new supplier can be often costly and can further get exacerbated by instances of vendor lock-ins. Buyers must scrutinize the offerings of service providers for any possibilities of vendor lock-ins and demand client testimonials from service providers to assess such possibilities. Watch out for products/services that are priced excessively low, as they can often result in costly lock-ins.

Needs of buyers can vary depending on the industry where buyers operate. For instance, buyers from the financial services industry give high importance to regulatory compliance and data security, whereas buyers from the e-commerce industry prioritize high throughput, low response time, and high scalability. Hence, service providers with a strong knowledge of the security, compliance, and governance needs of buyers' industries and a proven track record of performance with respect to these aspects should be prioritized.

Buyers should ask for a detailed account of the data protection capabilities of the supplier. In addition, buyers should also enquire regarding the redundancies available during instances of outages or disruptions. While some providers can provide backup, others may have limited capabilities in hardware redundancy.

IS Business Systems Software procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for IS Business Systems Software procurement. Some examples include: