Beginning with its June 21 issue, Purchasing Magazine will feature a series of stories on best practices in information technology (IT) procurement. For the series, members of the IT Procurement Working Group of the Society for Information Management (SIM) will share what they have come to recognize as best practices in IT procurement.

The first story focuses on setting up and managing an IT procurement operation. It features best practices developed by purchasing professionals at Ameritrade, Alcoa and Harrah's Entertainment.

Other stories will look at contract management, tracking and reporting cost savings, e-procurement and IT staff augmentation (consolidating and centralizing use of IT consultants).

Typically, SIM members, who are IT professionals, suggest topics for working groups. If others in the national organization share similar interests, the topic is selected formally and a working group is formed. Members then collaborate to better understand the issues at hand.

Formed in June 1993, the IT Procurement Working Group was founded for three reasons, says Brad Simpson, co-chair of the group and assistant corporate purchasing director, The Principal Financial Group, Des Moines, Iowa. "Companies were not managing IT procurement any differently than they were managing their office supplies purchasing. IT spending was increasing exponentially without a managed procurement process. A more informed buying community was needed."

The other co-chair is Gary Beaudreau, vice president technology acquisition, State Street Corp., Quincy, Mass.

The first meeting of the IT Procurement Working Group took place in Philadelphia in January 1994, with representatives from about 20 companies attending. The group's goal then and today remains simple, says Simpson: "Reduce cost and risk in IT procurement."

Now about 40 companies strong, the group of IT procurement professionals meets quarterly. (Last month it met in Winston-Salem, N.C. The next meeting is July 26-27 in Seattle, Wash.) Along with ample networking opportunities, the meeting's agenda typically includes a guest speaker.

For more information on SIM's IT Procurement Working Group, contact Simpson at Principal Financial at (515) 235-5379 or Beaudreau at State Street at (617) 985-1695.

Susan Avery, Senior Editor, Information Technology