Procurement Best Practices for the IT Consulting Services Supply Market
The global IT consulting services market has reached maturity, but the trend of outsourcing to low-cost countries continues. Every time you research online to see how much the market for IT consulting services will grow, you’ll see a common pattern, which is “the market is growing, but slowly.” Now you wonder why this market is […]
The global IT consulting services market has reached maturity, but the trend of outsourcing to low-cost countries continues.
Every time you research online to see how much the market for IT consulting services will grow, you’ll see a common pattern, which is “the market is growing, but slowly.” Now you wonder why this market is witnessing slow growth despite the rising adoption of IT services. Well, fret not, we at SpendEdge don’t believe in giving ambiguous answers. Our procurement market intelligence reports offer businesses and stakeholders the scope to understand the supply market and the key factors affecting the sourcing and procurement of IT consulting services. According to our experts, the demand for IT consulting services has matured, and the market is fragmented due to the presence of independent consultants and small firms who provide niche services such as data analytics and IT advisory. (Source: Global IT Consulting Services Category – Procurement Market Intelligence Report)
In addition, the recent rise in M&As across industries, such as chemical and oil and gas, will boost the demand for IT consulting services to handle activities pertaining to accounting, resource planning, budgeting, and data warehousing. With the preference for IoT rising ever so steadily among end-users, the spend momentum will increase and buyers will not be looking at conventional large service providers to avail effective IT consulting services. The Americas and Europe are expected to be the front-runners in terms of demand but regions like APAC are also anticipated to witness an increase in the demand for such services due to the extensive outsourcing of such services. Now that we’ve established a base for you to understand the growth potential of the IT consulting services market, let’s look at some of the procurement best practices that will help you save costs in your sourcing and procurement activities.
Top three procurement best practices for IT consulting services
Strategy 1: Streamlining execution
Due to the critical nature of their operations, buyers of such services have to focus on streamlining execution and monitoring services in a structured manner. One of the procurement best practices for the buyers is to establish a strategic plan in collaboration with service providers. This would help both parties to create a blueprint of the solution and allow category managers to identify cost-saving opportunities.
Strategy 2: Performance monitoring and benchmarking
To increase supplier accountability and identify potential performance bottlenecks, the buyers of IT consulting services should design strong KPIs for the constant monitoring and evaluation of service providers’ performance. Since the data gathered from establishing effective KPIs would help buyers to gain a better bargaining power during the contract renegotiation phase, it is one of the key procurement best practices to be followed if you are looking to procure IT consulting services at effective rates.
Strategy 3: Emphasize on strategic contract management activities
One of the best procurement best practices to source IT consulting services at effective rates is to define phases and processes that service providers should follow and clarify responsibilities that need to be fulfilled to gain maximum value from their engagements. The critical nature of the category makes it essential for the procurement department to participate in planning actively.
SpendEdge’s procurement report offers strategic insights on the supply market for IT consulting services and helps procurement professionals to gain information on the sustainability and procurement best practices, pricing models, supply market, and key sourcing and procurement trends affecting the global IT consulting services market.