Many are now using internet web research as part of this process. In all cases vast amounts of time is being wasted on manual comparison before then using telephone negotiation to secure the best price and availability on the day. Organisations are throwing away an average of 10% of their IT budgets through unstructured buying,” he concludes.
The research has also unearthed that some organisations are paying up to 150% over the odds for their IT when in fixed price long term agreements as technology ages and cost prices decline over time. This means that organisations secure best value on no more than day one of the agreement.
Previous research by www.theitindex.co.uk found that over 50% of IT managers surveyed stated that price and 79% stated availability were of high importance and time was spent conducting activity to that end. However, best price and availability were rarely achieved.
On that basis, over half of the UK’s IT buyers are ringing round to negotiate on price, which equates to over £530M in mis-placed hours and phone costs whilst over ¾ are phoning round for best availability and quick delivery. This means the cost to UK businesses of securing best availability is in the order of £838M. This adds up to a large requisition-to-order cost.
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