procurement
MANAGED SERVICES
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http://www.dcseurope.info/n/azah
Why procurement technology is moving into the cloud
The cost of hosting technology applications in the cloud is rapidly declining. Google recently re-enforced their efforts in the market by announcing that their prices were 50% lower than Amazons’ for similar services. The business case for CPO’s and CIO’s is strong; however, due to uncertainty and new risks, it is only recently that a large number of companies have begun to engage with these services. IT and Procurement professionals now seem to have come to terms with these risks. By Terry Donnelly, Head of Technology & Product Development at Xchanging and Philip Allouche, Global Head of Procurement Solutions, at Xchanging.
Why do companies choose Cloud Service arrangements over traditional outsourcing arrangements or hosting?
Reducing capital costs is the main goal, although several other factors are helping businesses in the long term. The reduction in skill requirements, increased levels of adaptability for demand, business changes
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www.dcseurope.info I February 2014
and platform for standardisation is allowing businesses to move faster. Equally, the ability to evolve technology ever faster is benefiting each company’s ability to compete. The Procurement function has long been slow to adopt new technologies to improve performance. Technology applications, like spend analytics, contract management and
supplier relationship management, are now much easier to buy and implement. Cloud services raise a number of compliance risks where critical functions or sensitive data are involved:
Now that these technology applications are within the reach of the often limited budgets of Procurement departments, the main
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