The IT Procurement Policy - Coursework Example

IT PROCUREMENT POLICY by Student’s Name Code + Course Name Professor’s Name University Name City, State Date Table of Contents I. Abstract 3 II. Purpose 3 III. Problem statement 3 IV. Introduction 3 V. Conclusion 9 VI. References 10 I. Abstract The IT procurement policy extended abstract entails the drafting of outsourcing procedures for all Information Technology equipment and services, and the span of their application. In this document, principles of design of IT products, sourcing, procurement rules, resourcing and compliance to governing regulations and rules have been made elaborate. It includes legal standards and frameworks that have been outlaid to oversee a quality delivery of IT infrastructure and services at a professional level. (Wyoming, 2016) II. Purpose The core objective of this study is to establish an effective and efficient procurement procedures and regulatory policies, which govern the acquisition of Information Technology equipment, which include both hardware and software. It also includes those that govern external support team policies and the correlating integrated systems for the institution. III. Problem statement Procurement policies in the IT sector have suffered a great deal in lack of customization of its products with an evolving and rapid technological advances and upgrades that have beset the industry. Based on creativity which lacks limit, futuristic technologies keep on emerging and so are solicited revenues. Yet with the age of information revolution that has taken the world by storm, counterfeit, substandard products can easily be acquired by unsuspecting and less knowledgeable office firms, if procurement policies are not keenly and carefully crafted. IV. Introduction Procurement policies vary across firms though they bare the same structure and outline. Due to the dynamic nature of organization’s information flow architecture and needs, the procurement policies are bound to be flexible. This is also supported by the fact that financial base for different organizations is different. Other factors that determine the IT procurement policy for an organization include the size of the organization, nature of business, and structure of the organization. In this paper, the main focus is set to address the contrast that exist between the general procurement policy and the specific IT procurement policy in the areas mentioned in the abstract section. These points of comparison cut across different business structures and design. a. Procurement process. In general procurement, a process referred to as the procurement life cycle is followed. This is an eight stage process that is employed by financial institutions such as banks and any other organization with fiscal transaction. Taking the case of European bank for Reconstruction and Development, the policy is designed such that the procurement of all goods, works and services, which includes consultancy services for the main and satellite branches are run with transparency, in due time, efficiently and effectively and in line with the standing corporate objectives. In regards to the IT section, the most prominent parts of the policy are goods and services that they need as well as services. With the recent trends in the IT sector, such that almost all products: hardware, software, expertise and consultation are disposed to clients as service, the existing policies are insufficient in overseeing their acquisition and procurement. Thus in practice, a number of modification are bound to be conducted which makes the policies more dynamic than static. In so stating, the following guidelines would apply for purchases in any institution: i. IT services should be solicited, managed and purchased through the IT department, which includes all related software and hardware equipment. It implies that all departments in need of IT services should have to liaise with the IT department in the process of setting a purchase order. This is because the IT department is well versed with the IT products knowledge and can do well to recommend the best for ease of troubleshooting and hence minimizing the downtime in case of a fault. However in practice, this remains an ideal. Some items that require specific redressing by a department might seem too petty or of less significance to the IT department. Also policies that are tailored to the departments might render such policy inappropriate and a cause for inconvenience. For instance, the IT department might have a procurement schedule for specific devices that suffer wear and tear, such as network cables. In case of a damage in a department that needs urgent replacement, it may have to override the set procurement period, and in case of communication fault, the department may dim it proper and wise to do a procurement. It is thus dimmed suitable that there be an IT representative in every department to address the sudden and impromptu damages and arising needs thereof. (Wyoming, 2016) ii. Approval, amendment and decline of the IT products: goods, services and support teams decisions should be made by chief IT Head. The entire responsibility lies upon him as he is answerable and liable for all IT related issues to the institution’s management. In a way this is achieved by having subordinates to whom departmental IT related matters are delegated and so would brief the Head of IT department. Such decentralization of tasks and delegation of duties and responsibility work to ensure that information flow and control is efficient and effective. (YMDDIRIEDOLAETH, GIG CEREDIGION, A CHANOLBARTH,CYMRU, n.d.) iii. Installation and replacement of IT equipment across the departments are also tasks to be heaped upon the IT department. This falls on the principle that the IT department is well staffed with professionals who are credited to handle equipment from reliable suppliers. For instance, suppliers like CISCO networks would not suffer an unqualified person, that is one who is not CISCO certified to handle their range of products. Hence they can deny a purchase order in case it is learnt that the firm purchasing the equipment doesn’t have expertise and required knowledge to handle their product. This seeks to safeguard the supplier against careless damage of the supplied equipment and warrant claims for faulty products which may be caused at installation by an unqualified staff. However, in real sense, the IT department does not always have the expert staff and may subcontract qualified personnel to handle equipment that may not be of common knowledge to its staff. Those areas that need more expertise, for instance power regulations, the department which almost always comprise of network engineers would outsource an electrical engineer or a specialized firm to do the installation and maintenance of the equipment under agreed memorandum on terms of service. In few cases, the department would employ certified professionals to boost its expertise base and hence make it easier to install and maintain the particular equipment placed under its mandate. (University, 2013) b. Standardization This is the process of which the IT department should test and confirm that the products acquired meet the set standards according to standardization bodies. This would work to prevent the use of counterfeit products or those that don’t meet the set standards for operation. Besides, it would oversee a form of consistency in the products acquired by the firm in every department. Standardization of IT equipment would have an added advantage in terms of compatibility. Those devices that have a common architecture and design have a less tendency of fault due to incompatibility, as well as easy to synchronize and integrate their operations. The process of troubleshooting them is also quite easy and simple basing on familiarity of the technical devices. In most organizations and institutions, the background check is done by the IT department in line with the standardization policy. Furthermore, no organization has a penchant for substandard goods, products and support services, in their quest to meet their objectives. (desk, n.d.) c. Support The IT team would always and often offer support to all other departments pertaining to issues that relate with communication and information technology. This spans from the simple office equipment operations to complex interdepartmental processes. It would mean that all device failures and malfunctions would be addressed to the IT department which would decide on the course of action that need to be taken in rectification of the issue or problem. This also includes the installation, upgrading and evaluation of software and systems in the organization. In normal practice however, it is less hazardous and less costly to have the vendors or distributors of software products to give support for a specified time of evaluation such as a minimum period of a year such that they can correct problems arising at runtime that were possibly not taken to account during development. Thus it is always important to extend a warrant period of products whose operation would be dynamic with the use of the organization. Practically, the department acquiring a software products would lack the development skills and a certain level of security is appended by developers to prevent theft of intellectual products hence through the support of the vendors, it would be easier to have their expertise set on the products and save the organization possible extended duration of system failure and down time. Support firms are mostly specialized in their field of work and are brought onboard and synchronized with the organizations IT staff for the role of protecting the organizational data integrity. The same applies to hardware products that are sensitive in terms of handling and cost. (Directors, 2014) d. Risk This covers evaluation and financial implications in the purchase of IT equipment, both hardware and software. The IT department has to document with clarity the impending risk, especially on the financial obligations for proper consideration in resourcing or outsourcing. In practice, risk evaluation is done in joint forum with the finance department to weigh the importance and worth of any IT product requested, against the necessity of its operation. (desk, n.d.) V. Conclusion The IT procurement policy needs to be comprehensive such that it would see better business operations. The above discussed areas and terms play a vital role in ensuring that the IT products purchased add value to any organization and institution that would rely on its IT infrastructure to grow. VI. References desk, I. s., n.d. ITProcurementPolicy. [Online] Available at: http://www.salford.ac.uk/__data/assets/pdf_file/0011/898436/ITProcurementPolicy.pdf [Accessed 16 November 2016]. Directors, E. B. o., 2014. Corporate Procurement Policy. s.l., European Bank for Reconstruction and Development. help desk, w., 2015. IT-Purchasepolicy2015. [Online] Available at: https://www.wcupa.edu/infoservices/clientServices/itPurchases/documents/IT-PurchasePolicy2015.pdf [Accessed 16 November 2016]. University, M. M., 2013. IT services. [Online] Available at: https://www2.mmu.ac.uk/media/mmuacuk/content/documents/it-services/policies/policy_ref_ITprocurementPolicy.pdf [Accessed 16 November 2016]. Wyoming, U. o., 2016. extended-abstract-university-of-wyoming. [Online] [Accessed 16https://www.yumpu.com/en/document/view/43584267/extended-abstract-university-of-wyoming 11 2016]. YMDDIRIEDOLAETH, GIG CEREDIGION, A CHANOLBARTH,CYMRU, n.d. INFORMATION TECHNOLOGY (IT) PROCUREMENT POLICY. [Online] Available at: http://www.wales.nhs.uk/sites3/documents/49/03ITprocurement.pdf [Accessed 2016 November 2016]. Read More