Skip to content
Tiatra, LLCTiatra, LLC
Tiatra, LLC
Information Technology Solutions for Washington, DC Government Agencies
  • Home
  • About Us
  • Services
    • IT Engineering and Support
    • Software Development
    • Information Assurance and Testing
    • Project and Program Management
  • Clients & Partners
  • Careers
  • News
  • Contact
 
  • Home
  • About Us
  • Services
    • IT Engineering and Support
    • Software Development
    • Information Assurance and Testing
    • Project and Program Management
  • Clients & Partners
  • Careers
  • News
  • Contact

Advice from procurement: How to evaluate and propose new IT investments

Gartner recently cut their expected IT budget prediction from 5.1% to just 2.2% in 2023. This is three times lower than the projected 6.5% global inflation rate. As the world continues to experience economic uncertainty, IT leaders look to tighten budgets, consolidate tools and resources, and generally become more risk-averse when evaluating new investments. So how can you request a new investment from your decision-makers while ensuring minimal costs and maximum ROI this year?

Here’s four pieces of advice from procurement on how to evaluate and propose new IT investments during an economic downturn.

Involve your procurement team from the beginning

McKinsey surveyed more than 1,100 organizations worldwide and found that the best-run procurement teams can generate twice the annual savings of those in the lowest quartile. Procurement professionals are skilled at negotiating contracts, identifying cost-saving opportunities, and evaluating vendors.

By bringing them into the conversation early on, you can leverage their expertise and get the best cost and contract structure available upfront while you focus on the technical requirements. This can also help you avoid a long and onerous contract process with better quality in the long term.

To get started, develop a list of criteria your IT and security investments should meet. This might include things like cost, feature set and functionality, reliability, scalability, and vendor support. Once you have this list, work with your procurement team and use it to evaluate potential solutions and vendors.

Consider the total cost of ownership

When investing in IT and security, businesses need to consider more than just the initial purchase price. The total cost of ownership (TCO) considers all costs associated with an asset over its lifetime, including shipping, taxes, installation, training, maintenance costs, and more.

In a survey by Deloitte, 65% of organizations reported that cost reduction was a top business priority, and 52% cited TCO reduction as a key strategy for achieving this goal. By evaluating TCO, businesses can make more informed decisions and avoid unexpected expenses down the line.

Reduce the perception of cost

Change can be scary, especially if there are dollar signs attached to it. By reducing the perception of cost and associated risks, you can help decision-makers feel more comfortable with investing in new solutions and technologies.

To do this, consider taking the following steps:

  1. Validate proof: Check references and testimonials, ask for proof of concept, and talk with the vendor’s partners. Compile this information and use it as part of your analysis and presentation to decision-makers.
  2. Focus on positive impact: Focus on the benefits and ROI of the proposed investment, such as increased productivity, better security, or improved customer satisfaction. Present these benefits in a clear and concise way, using data and real-world examples to support your case.
  3. Consider your company scorecard: Your procurement team has a scorecard with clear metrics to evaluate purchase decisions. Consider their metrics to make informed decisions and best support your proposed investment.
  4. Present the facts and numbers: Be transparent about the costs associated with the investment. Provide detailed information about the total cost of ownership, including any ongoing maintenance, support, or upgrade costs. This can help decision-makers understand the full picture and make informed decisions.

Evaluate the risk of doing nothing

In addition to ROI, it’s also important to consider the risk of doing nothing. This may include lost productivity, increased downtime, and slower time to market. Provide decision makers with credible industry research, as well as your own team’s statistics to support your request.

For example, if you’re proposing to invest in a security solution powered by AI and machine learning, it would behoove you to present cost savings from automated security, such as that from IBM.

Or if you’re finding that building your in-house web application platform is locking you in, report on the specific challenges associated with the project, such as hidden costs, maintenance fees, and compliance issues your team faces. These are common problems that procurement and IT/security professionals should work together to address.

Wrapping Up

Collaboration between procurement and IT/security professionals is crucial to evaluating current and future investments in order to minimize costs and maximize ROI, especially during an economic downturn. By clearly defining needs and requirements, evaluating TCO, and performing risk assessments, these teams can work together to help their business leaders make more informed decisions for an improved bottom line.

Edgio’s holistic applications platform helps address challenges associated with website security and performance, hidden costs, maintenance, and compliance requirements. Learn more here.

SaaS
Read More from This Article: Advice from procurement: How to evaluate and propose new IT investments
Source: News

Category: NewsMarch 23, 2023
Tags: art

Post navigation

PreviousPrevious post:Accenture to lay off 19,000 to cut costs amid economic uncertaintyNextNext post:Why AI is key to hiring and retaining developers

Related posts

Barb Wixom and MIT CISR on managing data like a product
May 30, 2025
Avery Dennison takes culture-first approach to AI transformation
May 30, 2025
The agentic AI assist Stanford University cancer care staff needed
May 30, 2025
Los desafíos de la era de la ‘IA en todas partes’, a fondo en Data & AI Summit 2025
May 30, 2025
“AI 비서가 팀 단위로 지원하는 효과”···퍼플렉시티, AI 프로젝트 10분 완성 도구 ‘랩스’ 출시
May 30, 2025
“ROI는 어디에?” AI 도입을 재고하게 만드는 실패 사례
May 30, 2025
Recent Posts
  • Barb Wixom and MIT CISR on managing data like a product
  • Avery Dennison takes culture-first approach to AI transformation
  • The agentic AI assist Stanford University cancer care staff needed
  • Los desafíos de la era de la ‘IA en todas partes’, a fondo en Data & AI Summit 2025
  • “AI 비서가 팀 단위로 지원하는 효과”···퍼플렉시티, AI 프로젝트 10분 완성 도구 ‘랩스’ 출시
Recent Comments
    Archives
    • May 2025
    • April 2025
    • March 2025
    • February 2025
    • January 2025
    • December 2024
    • November 2024
    • October 2024
    • September 2024
    • August 2024
    • July 2024
    • June 2024
    • May 2024
    • April 2024
    • March 2024
    • February 2024
    • January 2024
    • December 2023
    • November 2023
    • October 2023
    • September 2023
    • August 2023
    • July 2023
    • June 2023
    • May 2023
    • April 2023
    • March 2023
    • February 2023
    • January 2023
    • December 2022
    • November 2022
    • October 2022
    • September 2022
    • August 2022
    • July 2022
    • June 2022
    • May 2022
    • April 2022
    • March 2022
    • February 2022
    • January 2022
    • December 2021
    • November 2021
    • October 2021
    • September 2021
    • August 2021
    • July 2021
    • June 2021
    • May 2021
    • April 2021
    • March 2021
    • February 2021
    • January 2021
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    • May 2020
    • April 2020
    • January 2020
    • December 2019
    • November 2019
    • October 2019
    • September 2019
    • August 2019
    • July 2019
    • June 2019
    • May 2019
    • April 2019
    • March 2019
    • February 2019
    • January 2019
    • December 2018
    • November 2018
    • October 2018
    • September 2018
    • August 2018
    • July 2018
    • June 2018
    • May 2018
    • April 2018
    • March 2018
    • February 2018
    • January 2018
    • December 2017
    • November 2017
    • October 2017
    • September 2017
    • August 2017
    • July 2017
    • June 2017
    • May 2017
    • April 2017
    • March 2017
    • February 2017
    • January 2017
    Categories
    • News
    Meta
    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org
    Tiatra LLC.

    Tiatra, LLC, based in the Washington, DC metropolitan area, proudly serves federal government agencies, organizations that work with the government and other commercial businesses and organizations. Tiatra specializes in a broad range of information technology (IT) development and management services incorporating solid engineering, attention to client needs, and meeting or exceeding any security parameters required. Our small yet innovative company is structured with a full complement of the necessary technical experts, working with hands-on management, to provide a high level of service and competitive pricing for your systems and engineering requirements.

    Find us on:

    FacebookTwitterLinkedin

    Submitclear

    Tiatra, LLC
    Copyright 2016. All rights reserved.