An IT procurement strategy matters because buying technology is a long process, often involving various key stakeholders and requiring comprehensive knowledge of different IT systems and their compatibility. New IT products and services can also come with a hefty price tag and, as such, acquisition should be approached strategically.

So, what makes up a successful strategy? This guide sets out six steps, the output you should expect from each one and the pitfalls to watch for.

An IT procurement strategy is a plan for how your organisation buys technology and IT services. It follows six steps: define requirements, analyse the market, choose a sourcing route, evaluate proposals on total cost and fit, agree the contract, and manage the supplier and transition. Each step produces an output that the next step depends on.

What Is IT Procurement?

IT procurement is the process of acquiring the technology an organisation needs to operate. This includes hardware, software, cloud services and the professional services that support them. Procurement in IT differs from many other categories because products date quickly, systems have to work together and much of the cost arrives after the initial purchase.

The IT procurement process is the sequence of activities that takes a purchase from an identified need through to a managed contract. An IT procurement strategy sits above that process. It sets the objectives, the operating model and the rules that each individual purchase should follow.

In reality, many organisations have a process but no strategy. A growing business will often find that its procurement of technology has developed piecemeal, with each department buying what it needs.

The same approach applies whatever the sector. A high tech procurement strategy or a software industry procurement strategy will place more weight on development tools, cloud capacity and licensing, but the six steps stay the same. Where the skills are not available in-house, it is worth knowing when to seek help, and many organisations bring in IT procurement consultants for larger or more complex purchases.

The 6 Steps of an IT Procurement Strategy

The steps below run in order. It is always advisable to complete each one properly before moving on, as early mistakes are expensive to correct once a contract is signed.

1. Define Your Requirements

IT procurement can be expensive, and even more so if you make costly mistakes through improper planning. The first step is to identify organisational needs and capabilities through an audit. Often the most effective way of doing this is to interview the leaders of each department and understand how technology could improve their team's efficiency.

Team leaders will also have the best understanding of current processes, existing suppliers and the return on investment from those services. From there, set objectives: what does the purchase aim to achieve, and which parts of the business are you looking to improve and why?

• Output – A prioritised requirements document with agreed objectives and a budget range.
• Common pitfall – Writing requirements around a product someone has already chosen, instead of the outcome the business needs.

2. Analyse the Market

As well as current issues, various models can help you to identify future threats and opportunities. These include a SWOT analysis or Porter's Five Forces. It is also important to consider the IT systems your competitors are using, so that you are at least matching their capabilities.

Market analysis should also cover the supply side. Identify which suppliers can meet the requirement, how they sell (direct, or through distributors and resellers), how they price and how quickly the products are changing.

• Output – A short market report with a longlist of suppliers, typical pricing models and the main risks.
• Common pitfall – Relying on supplier demonstrations as market research.

3. Choose Your Sourcing Route

Once you understand the requirement and the market, the next step is to decide how you will buy. This should cover:

• Operating model – Will the procurement be run internally, or supported by an external specialist?
• Supplier approach – Will you seek a single supplier to satisfy all needs, or several? If several, will you also need a service integrator?
• Route to market – Will you run a full tender, a request for proposal (RFP), a direct negotiation or, in the public sector, a framework call-off?
• Execution method – Will new products and services be introduced in stages, to allow employees to adapt, or all at once?

For most purchases of any size, a structured RFP gives the fairest comparison between suppliers. It is worth reading up on how to write an RFP before drafting the documents, and larger organisations often use dedicated RFP process management to keep the timetable and the evaluation on track.

• Output – A sourcing plan, a timetable and the tender or RFP documents, including the evaluation criteria.
• Common pitfall – Issuing the RFP before the evaluation criteria and weightings are agreed, which makes the final decision hard to defend.

4. Evaluate Proposals on Total Cost

Unlike other areas of procurement, IT purchases can be particularly complex owing to the hidden, or lifecycle, costs that come with new products. To be clear, suppliers should not be assessed on initial acquisition cost alone.

A common way of reviewing proposals is to consider the total cost of ownership (TCO). Put simply, TCO = purchase cost + implementation costs + running costs over the contract term + exit costs. This includes consideration of:

• Purchase cost or subscription fees
• Delivery and installation
• Training
• Operational labour
• Maintenance and support
• Upgrades
• Security
• Decommissioning and data migration at exit

Aside from cost, innovation and the suitability of the product for resolving your needs should also be key considerations.

• Output – A scored evaluation, a TCO comparison across the full term and a recommended supplier.
• Common pitfall – Comparing year one prices only, and missing the cost of support, upgrades and additional users.

5. Agree the Contract

The preferred supplier's proposal now has to be turned into a contract that protects both sides. Whether you are on the customer or supplier side, clear terms reduce the risk of dispute later. Pay particular attention to automatic price increases, capacity limits, renewal terms and cancellation restrictions.

The contract should also set out service levels, the remedies if they are missed, data and security obligations, and what happens at exit. Suppliers should include transition plans within their proposals, and these should be written into the contract.

• Output – A signed contract with service levels, a pricing schedule, a transition plan and an exit plan.
• Common pitfall – Accepting the supplier's standard terms without review because the project is running late.

6. Manage the Supplier and the Transition

Moving from one provider or solution to another can have organisation-wide impacts, so plan the transition early. There are three main groups to consider:

• Existing suppliers – When do current contracts end, and how will the handover from incumbent to new supplier be managed to avoid downtime?
• Employees – One of the biggest inhibitors to successful implementation is the time it takes people to adapt. Careful planning and training before the new product goes live will reduce this.
• Customers – Consider whether the change affects customers directly or indirectly and tell them in good time.

Running a large IT procurement project is time-consuming, and it should not be embarked on without a dedicated team. This typically includes a project manager and procurement, technical and legal expertise. One aspect businesses often miss is IT governance: the processes that make sure IT is used effectively to help the organisation achieve its goals.

• Output – A governance structure, a transition plan, and a schedule of supplier performance reviews.
• Common pitfall – Treating contract signature as the end of the project. Most of the value is won or lost in delivery.

Planning a major IT purchase? Talk to our technology procurement team.

IT Procurement Best Practices

The checklist below summarises IT procurement process best practices that apply to most purchases, regardless of size or sector.

• Start with outcomes – Define what the business needs to achieve before looking at products.
• Involve the right people early – Bring procurement, IT and finance together at the start, along with the teams who will use the system.
• Assess total cost of ownership – Compare proposals over the full contract term, not on the initial price.
• Check compatibility – Confirm that new products integrate with your existing systems before you commit.
• Keep a contract register – Record renewal dates and notice periods.
• Plan the exit – Agree how data will be returned and services handed over when the contract ends.
• Review supplier performance – Hold regular reviews against the agreed service levels.

Procuring IT Services vs Products

IT products and IT services are bought in different ways. A product, such as a laptop or a software licence, can be specified precisely and compared on price, warranty and lifecycle cost. The separate guides to IT hardware procurement and software procurement cover those purchases in more detail.

The procurement of IT services is harder to specify. Managed services, support, consultancy and systems integration depend on the people delivering them and on how well the work is defined. It is always advisable to define the outputs beforehand, so that both parties know what is being delivered and how it will be measured.

In IT services procurement, the main things to agree are:

• Scope and outputs – What the supplier will deliver, and what is excluded.
• Service levels – Response and resolution times, availability, and the remedy if they are missed.
• Pricing model – Fixed price, time and materials, or a price per user or device, and how changes are charged.
• Exit – Knowledge transfer and handover at the end of the contract.

Using Frameworks for IT Procurement

Frameworks are a common route for IT procurement. UK public sector organisations can buy from suppliers already appointed to a framework, either by direct award or by a further competition, without running a full tender each time. Public procurement in most of the UK is now governed by the Procurement Act 2023, which came into force on 24 February 2025.

The main central government frameworks for technology are run by Crown Commercial Service / Government Commercial Agency (CCS / GCA). CCS became the GCA on 1 April 2026, and existing CCS agreements continue. Other bodies, including NHS and education consortia, run their own agreements. A separate guide to technology procurement frameworks sets out some of the current options.

Central government buyers are also expected to follow the Technology Code of Practice, which includes defining a purchasing strategy. For suppliers, the point to note is that a buyer can only call off from a framework if you are already on it, so applications need to be planned well ahead.

Key Takeaway

A successful IT procurement strategy is mostly about preparation. Define what the business needs, understand the market, and evaluate suppliers on total cost of ownership instead of the headline price. Then put the same effort into the contract, the transition and the ongoing management of the supplier.

How Athena Can Help

We can help your business understand what your true requirements are before you make any decisions. We can guide you in reviewing your existing technology contracts and what to look for in new ones, so you avoid automatic price increases, capacity limits and cancellation restrictions.

Choosing the best supplier can be an overwhelming process. We can help with market research, contacting suppliers for formal proposals, negotiating your terms and making sure remedies are in place if a supplier doesn't perform. We can also oversee the project from start to finish, including the transition.

Planning a major IT purchase? Talk to our technology procurement team.

Frequently Asked Questions

What is the IT procurement process?

The IT procurement process is the series of steps an organisation follows to buy technology. It runs from defining requirements and analysing the market, through sourcing, evaluation and contracting, to managing the supplier once the contract is live. Following the same steps each time makes purchases easier to compare and control.

What is the difference between an IT procurement strategy and an IT procurement process?

The strategy sets the direction: your objectives, your operating model and the rules for how technology is bought. The process is the set of steps that each purchase follows. A process without a strategy tends to produce individual purchases that make sense on their own but do not fit together.

What is total cost of ownership in IT procurement?

Total cost of ownership is the full cost of a product or service over its life, not just the purchase price. It includes implementation, training, support, upgrades, security and the cost of exit. Comparing proposals on this basis often changes which supplier offers the best value.