Services Procurement Management

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 your company’s goal, keeps costs within control, legally protects your 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 that is designed to support services procurement.