What is IT Procurement? 10 Step Process

IT procurement (also known as Information Technology procurement) is the process organizations use to purchase their IT assets. It sounds simple, but there’s a lot more to it than just placing an order. 

The real value of any IT procurement process lies in making sure that every purchase (and therefore every IT asset) fits the organization's strategy, goals, budget, and future plans. That’s why it’s the first and a key stage of the IT Asset Lifecycle Management process. 

So, how can we make this happen and actually achieve good results? Through a series of structured steps. Let’s see how. 

Why is IT Procurement Management important?

IT procurement is important because it affects how your company operates, grows, and stays secure. 

And with more and more IT environments relying not just on physical assets but also on SaaS (Software as a Service) subscriptions and cloud services, the importance of having a structured procurement process has never been greater. 

Let’s break down why it matters so much.

#1: Cost control and optimization

IT budgets aren’t unlimited, and every dollar counts. A strong procurement process helps you make better IT purchasing decisions, avoid unnecessary expenses, and negotiate better deals.  

#2: Strategic alignment

Every IT purchase should move the organization closer to its goals. Procurement helps ensure that assets and services aren't bought randomly but are carefully selected to fit into a bigger plan.

#3: Security and compliance

Technology purchases can open doors, for sure. But if you’re not careful, they can also open vulnerabilities. 

Procurement processes involve vetting vendors, reviewing contracts, and making sure the technology you’re bringing in complies with security standards and regulatory requirements.

#4: Asset Lifecycle Management

Good procurement lays the foundation for efficient IT Asset Lifecycle Management. By choosing the right assets from the start you make it easier to track, maintain, and eventually replace technology in a way that’s cost-effective and sustainable.

#5: Future-proofing the organization

IT procurement isn’t just about what you need right now. It's about anticipating future needs and making sure today's investments can evolve with the business. Smart procurement helps you stay one step ahead.

IT procurement categories

There’s no universal rulebook for defining IT procurement categories. Instead, organizations usually create their own groups based on what makes the most sense for their operations, and a lot of that depends on the criteria they choose to focus on.

One common way to organize IT assets is based on how quickly they need to be available:

• Fast-turnaround assets — Workstations, laptops, software licenses, peripherals, and anything employees might need immediately to stay productive. For these, it’s a good idea to keep some stock ready to avoid delays.
• Non-urgent assets — Items like servers, specialized hardware, or project-specific services that don’t require instant delivery and can be purchased as needed.

Of course, organizations can also categorize IT assets based on other criteria, like asset value (high-cost vs. low-cost items), type (hardware, software, or services), or business criticality (mission-critical vs. non-critical tools). It all comes down to what helps streamline the procurement process best.

Hardware procurement vs. software procurement

IT procurement covers all types of IT assets — from hardware and software to cloud services and consulting. So, why are we focusing specifically on hardware and software?

Simply put, they represent the largest share of IT budgets and come with very different purchasing processes, management challenges, and risks. Understanding these differences is key to building an efficient procurement strategy that saves money, boosts productivity, and reduces headaches down the line.

Let’s take a closer look at how hardware and software procurement compare:

At the end of the day, both hardware and software need smart procurement practices to avoid unnecessary costs, maintain security, and ensure your team always has the right tools to get the job done.

10 steps of the IT procurement strategy

There’s no single, universal way to run IT procurement. Each organization shapes its process based on its size, needs, industry, and internal structure. 

However, most IT procurement strategies tend to follow a series of core stages that help ensure everything runs smoothly. Here’s a quick look at the typical IT procurement journey:

1. Audit and centralize your IT inventory
2. Assess business needs
3. Set goals and budget
4. Build a cross-functional team
5. Identify and manage risks
6. Define vendor criteria and shortlist suppliers
7. Send RFI/RFQ/RFP documents
8. Evaluate bids and negotiate contracts
9. Plan for implementation
10. Monitor KPIs and optimize procurement strategy 

Before breaking them down, remember that a solid step in the right way is key towards an effective process. 

“Don’t boil the ocean. Get good at one small thing. That way, you can actually do the next one and build your foundation on solid data that’s trustworthy.”

Aaron Davenport, Software Asset Management Specialist

Episode 6 of Ticket Volume - IT Podcast

#1: Audit and centralize your IT inventory

Before you can start making smart procurement decisions, you need a clear view of what you already have. That means IT audits for all existing assets — hardware, software, licenses, cloud services, everything. 

The ultimate goal is to build a centralized IT inventory, ideally using an IT Asset Management (ITAM) tool that keeps everything updated in real time. 

A complete, accurate inventory helps you avoid redundant purchases, identify gaps, and build a procurement strategy based on real needs, not assumptions.

#2: Assess business needs

With your current IT landscape mapped out, the next step is to figure out what you actually need. 

This involves talking to different departments, understanding their challenges, and identifying the IT products and services required to support operations and goals, whether it’s new laptops for a growing team, software licenses for a new project, or servers to expand capacity.

The better you understand the real needs of the organization, the easier it will be to prioritize purchases and avoid waste.

#3: Set goals and budget

Once you know what you have and what you need, it’s time to set clear procurement goals and define a realistic IT budget.

Besides the obvious purchase costs, it’s always a good idea to factor maintenance, training, support, renewals, and future upgrades.

Align your procurement goals with the broader business strategy, making sure every investment supports long-term growth, not just immediate needs.

#4: Build a cross-functional team

IT procurement involves every department of an organization. That’s why it’s crucial to build a cross-functional team early in the process.

Bring together representatives from all key areas affected by IT purchases: Finance, HR, Operations and sometimes even Legal and compliance teams. This ensures broader visibility, faster decision-making, and better alignment with organizational needs. 

#5: Identify and manage risks

Like in any other organization, procurement in IT companies carries some level of risk. Take time to identify potential risks upfront. 

Assess vendor reliability, check security certifications, and map out any operational or financial risks tied to the purchase. Once identified, create mitigation strategies to minimize those risks before contracts are signed (not after problems arise). 

#6: Define vendor criteria and shortlist suppliers

With risks mapped out, it's time to establish clear criteria for selecting vendors. 

Think beyond just pricing and consider experience, support capabilities, financial stability, integration options, compliance standards, and security practices. Once you have your criteria in place, start shortlisting potential vendors that meet your technical, budgetary, and operational requirements. 

#7: Send RFI, RFQ, or RFP documents

Once you’ve identified potential vendors, it's time to reach out with formal requests. Depending on where you are in the process, you might send a:

• RFI (Request for Information) to gather general information about solutions and vendors.
• RFQ (Request for Quotation) to get specific pricing for clearly defined products or services.
• RFP (Request for Proposal) when you need vendors to propose how they would meet your detailed needs and objectives.

Not every procurement process will require all three. Choose the type of request that best matches your stage and goals. The key is to be clear, detailed, and consistent to get meaningful responses back. You can download a free RFP template to help you in the process. 

#8: Evaluate bids and negotiate contracts

Once the proposals or quotes start rolling in, it’s time to evaluate your options carefully. Look beyond just price: assess technical compatibility, support terms, vendor reputation, security practices, and how well they match your goals and criteria.

Shortlist the best offers, then move into negotiation. This is your chance to lock in favorable terms around pricing, service levels, renewal conditions, and other critical details. Strong contracts set the foundation for a healthy long-term vendor relationship. So, don’t rush this part.

#9: Plan for implementation

After selecting your vendor and signing the contract, it’s time to get ready for rollout.

Good implementation planning includes setting timelines, coordinating installations or configurations, scheduling training sessions if needed, and making sure the new assets or services integrate smoothly with existing systems.

#10: Monitor KPIs and optimize procurement strategy

The procurement process doesn’t end once the assets are delivered and installed. To truly get the most value, you need to monitor how your procurement strategy is performing over time.

Set up clear Key Performance Indicators (KPIs) and track them regularly. Use these insights to fine-tune your procurement practices, negotiate better renewals, improve vendor selection, and adjust budgets based on real-world outcomes. 

Using InvGate Asset Management as your IT procurement software

An IT Asset Management solution like InvGate Asset Management can support the entire IT Asset Lifecycle Management process, including the crucial IT procurement stage. 

Here’s how it can help streamline and strengthen your IT procurement strategy:

• Centralized IT inventory: Automatically discover and catalog all IT assets using both agent-based and agentless methods. This gives teams a full, real-time view of their environment to make informed purchasing decisions.
   
• Asset tracking and reporting: Deploy InvGate Asset Management’s Agent during imaging for complex systems like servers and laptops to collect detailed asset data — including hardware specs, installed applications, model numbers, and warranties. You can also track IT asset costs, IT depreciation, budgets, and contracts to plan smarter investments.
   
• QR code generation for assets: Automatically create QR codes for each asset to simplify identification, speed up audits, and access detailed asset information instantly, a huge advantage when planning replacements or new purchases.
   
• CMDB visualization: Use the built-in Configuration Management Database (CMDB) to map asset relationships, spot risks, and plan purchases with a complete understanding of your IT infrastructure.
   
• Asset health rules and smart tags: Apply asset health rules and use physical and digital tagging to monitor performance, identify risks early, predict replacements, and support smarter procurement decisions.
   
• Effortless software deployment: Seamlessly deploy newly acquired software across devices with script-based automation, reducing manual effort and deployment time.
   
• Integration with procurement workflows: Connect asset data to ITSM tools — including InvGate Service Management — to automate and support procurement workflows from request to approval.

7 best practices for IT procurement

Procurement in IT is constantly evolving, with new technologies, processes, and challenges shaping the way organizations source and manage their assets. 

Having a solid approach is key to keeping operations running smoothly, cutting costs, and setting up the business for long-term success.

Here are 10 IT procurement best practices to help you build a smarter, more efficient strategy:

#1: Choose an IT Asset Management software with procurement capabilities

Using an ITAM solution that supports procurement activities helps streamline asset tracking, manage vendor relationships, and maintain financial visibility throughout the asset lifecycle. It’s a key foundation for smarter, more strategic purchasing.

#2: Digitize and automate your procurement process

Manual procurement processes slow things down and open the door for errors. Moving to digital procurement — through ITAM tools, integrated workflows, and automation — improves efficiency, increases visibility, and makes supplier management much easier.

#3: Prioritize cost transparency

Always keep procurement spending fully transparent. Track and catalog every expense, from asset purchases to service contracts, and regularly audit your procurement activities to spot hidden costs or waste. This strengthens trust with stakeholders and improves budget control.

“One of the hardest things is the visibility into your procurement data [...] Especially in large organizations, you might have varying methods [...] There's all these different ways. Getting a grasp on what you're buying and who is buying it, is probably one of the most major steps you can do [...] So being able to get that information is vital. Once you get that information, how you process it, how you do things with it to say, okay, here's what we actually own.”

Aaron Davenport, Software Asset Management Specialist

Episode 6 of Ticket Volume - IT Podcast

#4: Strengthen vendor relationships

Building strong, long-term relationships with trusted vendors, OEMs, and service providers can lead to better pricing, faster support, and more flexible solutions. Good partnerships also make it easier to resolve issues and adapt to new business needs.

#5: Optimize Inventory Management

According to a 2025 study by The Hackett Group, procurement workloads are expected to rise by 10%, while budgets will only grow 1% — creating a 9% efficiency gap. To close this gap, procurement teams need to embrace AI and automation.

Early adopters are already seeing productivity gains of up to 25%, using AI for spend analytics, Supplier Management, and contract processing. Investing in AI-driven tools and exploring pilot projects now can help procurement teams stay competitive, cut costs, and unlock new levels of efficiency.

#6: Manage risks proactively

Every procurement decision carries risks — from vendor reliability to security vulnerabilities. Identify risks upfront, vet suppliers carefully, and build mitigation strategies into your procurement plans to minimize future headaches.

#7: Focus on Lifecycle Management

Procurement isn’t just about buying — it’s about managing assets from acquisition to disposal. Think ahead about upgrades, maintenance, and end-of-life strategies to get the most value from every investment.