Tech purchasing goes awry when business outcomes aren’t a priority

Almost four in five buyers report that they regret their latest technology purchase, according to the 2024 Gartner End-User Buying Behavior Survey. This is often a result of buying teams that lack direction or a cohesive process, then later realize that technology purchases don’t achieve target business outcomes. To remedy this type of dysfunction, CIOs must drastically change how their organizations identify, evaluate and contract for technology solutions.

This starts with sourcing, procurement and vendor management (SPVM) teams, which tend to make high-quality deals. As such, savvy CIOs appoint a direct report as SPVM team leader and invest in and guide the SPVM team to transform the tech purchasing processes into an agile business capability that engages and learns from technology vendors in order to deliver successful business outcomes. 

Aspire to be risk tolerant

Gartner concludes that risk-averse organizations tend to have worse technology-buying outcomes than risk-tolerant ones. Risk-tolerant buyers evaluate more information sources to prepare for the buying process, and stay apprised of potential pitfalls. 

A high-quality deal achieves business objectives at an acceptable level of risk with less regret, Gartner states. Retaining leadership oversight, a buying team comfortable doing business with technology providers, a clear statement of desired business outcomes with flexibility on the solution approach, agile or lean procurement processes and a risk tolerant approach are all drivers of high-quality deals.