IT Procurement: Processes, Contracts, Demands, Outsourcing, TQM, and Psychological Factors

Running head: IT PROCUREMENT
IT Procurement
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1IT PROCUREMENT
Table of Contents
Introduction......................................................................................................................................3
Processes of project procurement management...............................................................................3
Components of enforceable contract...............................................................................................5
Essential components of an offer.....................................................................................................6
Difference between independent and dependent demand...............................................................7
Some of the hidden cost of outsourcing..........................................................................................7
The process of relating TQM to IT procurement.............................................................................9
Psychological factors that may affect bargaining............................................................................9
Psychological factors affecting bargaining between sustainability IT procurement practices
compared to pure economic practices............................................................................................10
The key procurement consideration during evaluation of cloud SaaS offerings...........................11
The process of including within any services SOW......................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

2IT PROCUREMENT
Introduction
Over the past years, value of procurement becomes increasingly apparent. Present
research has indicated that at current days, more people recognize that the efficiency of IT
procurement. Several types of trade transactions are important to it. The procurement role is
necessary to any business that helps to buy anything. Business buys products or services from
several vendors. In addition, procurement professionals can handle detailed procedure of
procuring the purchases at very optimal price. In knowledge-based economy, creation of value,
technical as well as scientific advancement are important. In the United States, jobs in service
sector have increased from the 50% of total jobs in the US economy. Several organizations in the
service sector offers transportation, financial as well as communication services. It has
encountered the changes in regulatory environment along with technological structure. The
changes have opened up new global markets and forced service industries in order to determine
the ways that it is required to remain competitive. Emerging technologies as well as enhanced
communications have altered tolerance of most customers. The business purchase products from
several vendors. Procurement professionals can handle the details of the process of procuring.
The element procurement management assists meeting expectations of partners. The study deals
with the procedures of project procurement management, elements of enforceable contract,
necessary elements of an offer and difference between independent and dependent demand. In
addition, process of relating TQM to IT procurement and the key procurement consideration
during evaluation of cloud SaaS is discussed in the current study.

3IT PROCUREMENT
Processes of project procurement management
The procurement process is generally designed in order to gain a seller at reasonable
price. The procedure engages waiting time for sellers looking the requirements of the project as
well as responding. Hence, the process can take from a month to three months for the type of
procurement (Jonathan et al. 2017). The project manager requires being involved in the whole
procedure of procurement management and requires planning for procurements. The sequential
procurement management procedures are as followed.
 Plan procurements
 Conduct procurements
 Close procurements
 Administer procurement
The capabilities as well as knowledge bases are different as well as fast changing that the
organizations increasingly opt expanding the opportunity. The simplest form an acceptance of
contract offer is achieved verbally with the process of handshake with affirmative nod of head.
The knowledge as well as experience embodied in the human capital is the major
resources for the organizations. The inputs for procurement management process are as followed.
 Enterprise environmental factors: It engages culture of the organization as well
as existing systems that is made use of it.
 Organizational process assets: Procurement processes, standard contracts as well
as lessons learned from the project along with the list of prequalified seller, which
are considered as some organizational procedure assets.