Remaining in control of software and cloud procurement is rapidly becoming a real challenge and more complex. As organizations transform, the way they work and the services they offer change, so the demand to adopt a wider range of software and cloud services increases. Traditional IT and procurement processes can be bypassed completely in the rush to deliver new services to employees and customers alike.
Entire organizations can be under pressure to digitalize their operations. If employees need to wait for services to be allocated to them, it can lead to a frustrating user experience. With cloud and SaaS services readily available from any browser, this frustration can result in an increase of shadow IT and unauthorized software. Over half of organizations report that up to 40% of their IT budget was spent on solutions outside the purview of the IT department.
IT and procurement can quickly become out of step and mis-aligned, struggling to maintain visibility and control over the proliferation of software and cloud services being adopted. The task of managing costs and associated risks, and drive value from existing software and cloud investments becomes nearly impossible.
The result is an overspend on software and cloud services. With little control and accountability, the job of the procurement team can be daunting. With a third of software estimated to go unused, there is a huge opportunity for the procurement team to make real cost savings through the adoption of Digital Supply Chain processes and principles.