Services Procurement Management: The Way to Gaining a Competitive Edge

Corporations today are increasingly looking for means to operate a leaner, tighter business by contracting the services of outsourcers and consultants.

Services Procurement: what is it really?

Simply put, services procurement is a process for buying and managing complex service categories. Unlike procuring physical goods, buying services is usually less centralized within a corporation and relies on a completely different supply chain than physical goods. Most importantly, services procurement involves the legal, cultural, and organizational complexities associated with budgeting, evaluating, and engaging project-based talent—consultants—and services from third-party supplier through a Statement of Work (SOW) contract.

Managing services procurement – the right approach

Overall, the goal is to buy and manage complex services in a way that achieves the corporation’s goal, keeps costs within control, legally protects the corporation’s assets, and promotes innovation. A natural point of friction occurs because a manager’s primary concern is to complete their project quickly and effectively with as little administrative burden as possible. Bottom line, managers will seek out the path of least resistance. Ensure enforcement of guidelines, policies, and procedures by defining clear processes that are facilitated by technology designed to support services procurement, and obtaining executive buy-in.