18th June, 2022
TABLE OF CONTENTS
IT procurement manager plays a vital role in the procurement process of various technologies that help achieve the business goals.
IT procurement covers the activities involved in acquiring new technologies for your business. IT procurement brings a lot of responsibilities for IT procurement managers, that are required to smoothen the procurement process.
The IT procurement process is an essential strategic business process within the organization. The IT procurement manager leads and manages all phases of the procurement process.
The IT procurement manager evaluates and identifies the organization's and stakeholders' needs. Additionally, negotiates contracts, pricing, terms, and service level agreements.
IT procurement managers must create clear and explicit needs for IT products and services. The IT procurement manager ensures that all the IT products and services are acquired adequately so that the organization's projects and processes can proceed efficiently.
In recent times, technology has become a contributing factor to any business growth and brings digital transformation to procurement. The technologies include cloud, data analytics, vendor management, SaaS, and more. It smooths the journey to complete the tasks or achieve the goals and optimize the ROI.
An IT procurement manager having an in-depth knowledge of the procurement process and identifying business and strategic needs for IT will help the organization's growth. Understanding the IT procurement process will guide you in procuring the right solutions for the organization.
The IT solutions are considered the best when they make the employees efficient and contribute to the business ROI.
As per Glassdoor, the average salary of an IT procurement manager is Rs 13,33,656 per year.
As per salary.com, the average IT procurement manager's salary in the US is $142,783, but it mainly ranges between $105 399 and $170,707.
An IT procurement manager is responsible for ensuring that their business purchases the best solutions. They find the right vendor for organizations' technical requirements.
In addition, the IT procurement manager is responsible for reviewing the past purchases, and the evaluation determines the vendor's effectiveness, compliance, and business ROI.
The IT procurement manager works closely with the stakeholders and the vendors and plays a vital role in optimizing the business growth and development. The fulfillment of the responsibilities of the IT procurement manager will ensure the achievement of the ultimate goal, i.e., increased ROI.
Vendor evaluation: Before a company decides on a contract with a specific supplier, the IT procurement manager needs to evaluate the supplier to see if all the aspects are well collaborating with the company, along with the quality and price.
Interviewing vendors: It is essential to have a face-to-face conversation with the vendor. These conversations will provide you with a better understanding of the vendor's evaluation process and help you learn more about their products and services.
Interviewing the vendors will also provide you with a deep understanding of meeting the standards and working efficiently to meet the organization's demands.
Negotiation: The organization will always want to obtain the best price for each IT procurement. So, it is the responsibility of the IT procurement manager to analyze the price proposals of the vendors and the organization's financial reports before negotiating the best price.
Collaboration with the apt stakeholders: Collaboration with the stakeholders will help the IT procurement manager understand the requirements of procuring IT products or services and provide an overview of the existing solutions.
Monitoring and controlling the unrolling contracts: Once the contract is signed, the IT procurement manager needs to keep an eye on it to ensure that the vendor respects their part of the contract. The IT procurement manager needs to make the required adjustments to the existing contracts when required.
Maintain and review the records of procured IT products and services: The IT procurement manager must be constantly aware of the procured items and detailed information about the price, performance, etc.
IT procurement managers must hold a bachelor’s degree in supply chain management, logistics, or business administration.
In addition, experts with 10+ years of experience in IT sourcing and procurement techniques, contract/subcontract management, category management, etc., will make you qualified for this position.
Having experienced and knowledge in IT software and tools like Trello, Slack, DLP tools, contract management tools, SaaS management tools, CRM, and many more will add value to the educational qualification for an IT procurement manager.
To comprehend the IT procurement process, in-depth knowledge of preparing and reviewing contracts, negotiating terms, market and industry information, etc., will further qualify for the position but are not necessary.
IT procurement managers are required to be knowledgeable in collecting and analyzing data. This will help you better understand the data and make the correct decision on IT procurement.
IT procurement managers need procurement skills that will make their work more efficient. These procurement skills help IT procurement managers to guide procurement decisions in the organization.
In addition, procurement skills help the IT procurement manager to communicate with the apt stakeholders and decide the appropriate time to procure the IT services at the best price.
Below mentioned are the most desired skills for an IT procurement manager.
Strategic management skills: Strategic management skills suggest IT procurement manager has in-depth knowledge of the market and offers insights to the organization like market size, projected growth, competitors, industry trends, estimates ROI, etc.
Negotiation skills: With negotiation skills, IT procurement managers will be able to negotiate better with vendors and maintain a relationship with a win-win situation for both parties.
Interpersonal skills: Interpersonal skills are the most important one. This will help the IT procurement manager communicate with the closely associated stakeholders to understand the procurement process's needs.
Cost management skills: As an IT procurement manager, developing cost management skills enables you to evaluate, optimize, and control all aspects of the cost of the procurement process.
Contract management skills: For an IT procurement manager, having sound contract management skills includes managing the contract creation, execution, and analysis to optimize the operational and financial performance of your organization while reducing the financial risk.
Financial acumen: As an IT procurement manager, having the ability to make decisions with an overall understanding of the financial factors will help you negotiate for the costs that fit the forecasted budget for the procurement.
Project management: Project management skills will enable IT procurement managers, to apply the knowledge, skills, and techniques to execute IT projects efficiently and effectively.
Analytical skills: Analysis plays a vital role in the procurement process. This skill helps the IT procurement manager get insights and make the correct decisions by gathering information and solving the issues.
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