Closing The Gap: Assessing Procurement Opportunities For Managed Services

Procurement Opportunity Assessment

The success of corporation in the modern business landscape depends on finding and implementing ways to stay on steady rhythm of positive growth. The financial administration of the company is of the utmost importance and includes the process of procuring goods and services in the most cost-effective and strategic manner. Knowledge about current market conditions and trends, and rapid changes in technology, can help to inform the procurement process and help executives to assess opportunities. This article provides an insight into the process of assessing procurement opportunities for managed services, from an executive perspective.

Managed services refers to services hired outside of the organization for specialized functions, usually for period of time. The services can refer to the whole range of activities ranging from software management and computer infrastructure, to viewing important documents and records. Companies rely heavily on the efficient utilization of managed services to remain competitive, cost-effective and increase market presence. Assessing existing procurement opportunities can lead to maximum benefit.

To start the process of assessing procurement opportunities, it is best to begin by gaining good understanding of the current market. Consider the economic climate and trends in the business world. The purchase of managed services must be clear-cut decision that considers the long-term implications and the associated costs. Organize short-list of providers, evaluate the qualities and features of each, and compare the services. Assessing existing customer reviews can be helpful to analyze the customerservice quality.

The criteria used to evaluate the different services should be multi-faceted. While cost is very important factor, other aspects should also be considered. These can include the time periods of contracts, the quality of customerservice, and responsiveness to customer feedback. It can be advantageous to seek assistance from independent experts to provide more objective judgement of the different providers.

The selection process can also include comparison of the companies current services to the possible managed service procurement. Assuming the comparison favours the managed services, the next step would be to negotiate the terms of the service. In order to gain the best rates and options, open communications should be had with the providers. Important considerations to negotiate should include appropriate limitations on liability and escalation of issues, and optimal termination of the service. Also, confirm the time period associated with the contract and the specific processes governing contract renewals and extensions.

During the procurement stages, even after the awards are made, it is important to perform reviews and audits to ensure compliance with the agreements and contractual conditions. Vigorous operational management of the managed services should also be undertaken, which includes continuous assessments of the services being provided, as well as any issues and problems arising from the service. Proper communication between the service provider and the organization is also essential in ensuring successful outcome.

Procurement of managed services is beneficial when it helps the organization remain competitive and achieve improved financial benefits. However, the whole process entails making informed decisions and extensive research. Consequently, it is important that executives and decision-makers are aware of the process of assessing existing procurement opportunities to ensure that their organizations can benefit to their maximum potential.