Pitfalls to avoid when purchasing IT globally
By Staff -- Purchasing, 2/11/1999
Opting to implement buying strategies for software on a global basis, rather than nation by nation, corporate buyers want to ensure that they are achieving maximum value from their IT (information technology) spending. Corporate Software & Technology, Norwood, Mass., has compiled a list of avoidable pitfalls faced by purchasing managers as they choose to move software across national boundaries.CS&T derived its "Avoidable Pitfalls in International Software Acquisition and Deployment" list through its expertise in international deals.
"One of the worst mistakes a company can make is to contract its worldwide distribution with a supplier that claims to have global capabilities, but is not fully operational abroad," says Gail Sears, director of global services, CS&T. "By partnering with a supplier that understands the international marketplace and has global presence, the complicated acquisition and deployment process is much more likely to have a favorable outcome."
There are a variety of potential pitfalls corporate buyers should understand prior to implementing a global Information Technology initiative. Among them:
* Lacking an understanding of local business needs of foreign locations.
* Failing to understand the export regulations around the physical deployment of software.
* Failing to understand the international tax implications when deploying software to foreign locations.
* Neglecting to align the correct level of internal management with the importance and magnitude of the software distribution project.
* Failing to take into account whether or not the company's far-flung offices are compliant with the terms of their software licenses and not ensuring they have the ability to define themselves against an audit.
* Lacking a process for tracking worldwide purchasing activity and communicating effectively between disparate offices.
* Disregarding the cost benefit that comes from timely and/or phased deployment.
* Neglecting to map out a clear strategy in terms of budgeting, cost sharing, centralized versus decentralized purchasing, internal accountability, and more.
* Failing to find a supplier with truly global capabilities.
"By understanding the potential pitfalls up front, corporate buyers are much better prepared to move forward with software distribution strategies," says Sears.
Talkback
Related Content
Related Content
Sponsored Links
View All Blogs
Now Playing:
