Software Licensing Rental Category Procurement Intelligence Report

A changing ecosystem within the Specialist Software and Hardware market also affects the procurement process, cost dynamics and supplier attractiveness for the buyers of Software Licensing Rental. The cut-throat competition in the category is compelling suppliers to go aggressive on their pricing structure and increase their spend on sales and marketing activities. As a result, most suppliers are feeling a pressure on their margins and trying to offer higher margin value added services to have a better control on their profitability.

Buyers are showing an inclination to onboard suppliers whose offerings span beyond Software Licensing Rental. The practice brings in several advantages such as rationalization of supplier base, economies of scale and reduced category management cost.

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.

The report discusses in detail the best practices that have served well the category managers responsible for Software Licensing Rental procurement.

For example, Buyers must clearly define clauses pertaining to the ownership of subcontracting services that are not a part of preferred suppliers' portfolios. Subcontractors should be bound by the same terms and conditions as the main contractor to ensure consistency in quality and manage any adverse event such as data breach.

Category managers must explore opportunities to integrate planning and management activities using analytics to gain better control over category spend. This will also allow them to consolidate supply base easily as well as segment service providers depending on requirements and spend on each service provider.

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.

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