Title

Accessing next level technology with better procurement

Section
Guide
Summary

It wasn’t long ago when businesses started to offshore their IT services and other operations to faraway locations such as India in a quest for cost-savings and more favourable market conditions. While our love affair with offshoring may have curdled, developments in automation technology may be among the latest business trends to deliver further cost-efficient, effective solutions, at the potential risk of threatening in-house jobs and even the resource pool-dependent business model of the larger outsourcing giants.

Artificial intelligence, advanced analytics, automation, and digital platforms are no longer future concepts. They are rapidly reshaping how organisations make decisions, manage supply chains, and create competitive advantage. At the same time, procurement leaders must navigate a more complex landscape of geopolitical disruption, inflationary pressures, sustainability requirements, and increasing demands for resilience. In this environment, procurement has a unique opportunity to move beyond operational delivery and become a strategic driver of business value. So, how can procurement keep pace with this rapidly evolving landscape and capitalise on the opportunities it presents?

The rise of technological developments such as artificial intelligence, robotics and big data is changing the landscape when it comes to business strategy, with many companies having already started to pilot or implement these technologies including global banks and insurers.

How procurement can unlock value in a fast-changing business landscape

  1. 1. Stay close to the market

    To capture the new opportunities being developed for specific functions or processes it’s crucial to engage with the market more frequently. Speak to incumbent and prospective suppliers in artificial intelligence, robotics, automation and the cloud services space to understand the additional value they can deliver for you, perform pilot studies and keep an eye on what your competitors and other industries are doing. Make sure these opportunities in the marketplace are periodically reflected in your business, IT and procurement strategies.  

    As a first step, consider whether you might be able to benefit from the off-the-shelf products available; they can deliver fast, cost-effective solutions but only if they can meet your business requirements, which it’s critical to determine in order to maximise value. Otherwise, developing strategic alliances with incumbent or prospective suppliers with a view to innovating and developing leading technology can also provide your business with a competitive advantage. Don’t just focus on your own industry, monitor other innovative industry best practices and see if solutions can be made applicable.

    Developing strategic alliances with incumbent or prospective suppliers with a view to innovating and developing leading technology can also provide your business with a competitive advantage

  2. 2. More agile contracts

    Your contracts – like your business strategies – should be agile to capture the technological opportunities being developed in the market. Therefore, make sure you include flexible termination terms and scalability features in your contracts – particularly those with outsourcing partners. Significant, long-term contractual commitments might limit your ability to access new solutions in the market or you might end up paying twice for similar services. Train your legal department to manage these changes as they arise, which might result in a higher number of contracts in the short term. 

    Tools such as eSourcing, contract management and repository will enable procurement to run tenders more efficiently, and to manage contracts more effectively.

  3. 3. Leverage tools

    As organisations adopt AI-powered tools, specialised digital solutions, and increasingly interconnected technology ecosystems, procurement must evolve to manage a more dynamic supplier landscape. The challenge is no longer simply administering more contracts. It is orchestrating an expanding network of technology partners, ensuring commercial value, managing risk, and maintaining the flexibility to adapt as business needs and AI capabilities continue to evolve.

    Connected procurement platforms, AI-powered analytics, and integrated contract and supplier management solutions give procurement teams the visibility and control needed to make faster, more informed decisions. Rather than increasing administrative burden, these technologies automate routine activities, surface commercial insights, and enable procurement professionals to focus on higher-value activities such as supplier collaboration, innovation, and strategic decision-making.

    Organisations that embrace this shift position procurement as an enabler of business transformation, accelerating the adoption of new technologies while maintaining governance and commercial discipline. Those that fail to modernise risk turning procurement into a bottleneck, slowing innovation and limiting their ability to capture value from rapidly evolving AI and digital solutions.