UK.biz gets tough on IT suppliers

I want 10% off, and a free cuddly toy

  • alert
  • submit to reddit

Businesses are getting better at buying technology, driving harder deals with suppliers and investing more cleverly, according to a study of the UK's financial services sector. Offshoring is also becoming more important, as managers look for ways to improve their margins and cut costs.

The study, conducted by the University of Brighton, found a shift in buying patterns towards services, rather than isolated systems. This should not come as a surprise: the financial sector has to comply with a whole raft of regulations, all of which are driving spend on IT.

The wave of regulation is also forcing companies to take a wider view of how IT can support their work: it is no good buying kit that will only help you with Basel II, for instance, if you then have to go out and buy another system that will deal with Sarbanes-Oxley.

The study - carried out with trade body Intellect - concluded that tighter internal controls are also forcing companies to get tough with their suppliers. IT is seen increasingly as a business issue, too. This means the whole procurement process is more diciplined, and companies take more external advice before investing in systems and services.

Dr. Stephen Flowers, who led the research at Brighton University, said that the findings confirm a shift in the balance of power in favour of the buyer. He predicts that the same behaviour will soon emerge in other sectors.

Beatrice Rogers, Head of Private Sector at Intellect counselled suppliers to respond by looking at their own internal processes, and by re-evaluating their external relationships. Suppliers that fail to re-shape their business to suit the changing marketplace, or respond too slowly, will soon be in trouble, she warned.

The full report can be downloaded here. ®

Related stories

IT voices drowned in corporate governance rush
DHL mulls offshoring remainder of IT staff
IT security to go offshore. Maybe
BBC shortlists tech division buyers
Shell's IT department off to India


Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.