Addressing indirect spending in TechOps—not only for quick savings but also holistically—is difficult. Indirect spending is often not well managed because business teams make decisions without input from procurement groups.
To oversee spending effectively, companies need to consider two options. The first is for business and procurement teams to agree on a new working model in which they make purchasing decisions jointly from the outset (such as when outsourcing or offshoring).
The second is for the business side to agree to let the procurement function take the lead in making decisions so that procurement can apply its expertise to drive savings. This may require business teams to accept a different, more streamlined service level (such as for capex management).
Is your Procurement aligned with your business?
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