Sea change in purchasing trends

Sea change in purchasing trends

New research from IDC shows New Zealand businesses have dramatically changed their preferred supplier style in the last two years.

In 2004 72% of organisations surveyed chose to purchase through a one-stop shop. This year that drops to 46.2% with the majority of businesses opting for best-of-breed solutions.

Jenna Griffin, IDC services and solutions market analyst, says this is driven by the need for organisations to optimise IT investment, resulting in a more-for-less strategy.

Griffin recommends vendors and solution providers make consolidating industry partnerships a priority.

“With strengthened partnerships providers stand a better chance in the increasingly competitive solutions market. Those wishing to follow a one-stop-shop approach should carefully consider the benefits and pitfalls when outlining the value proposition to potential customers,” she says.

Griffin defines best of breed as selecting the best functionality from each technology group and integrating these into the best possible solution.

IDC’s ‘New Zealand IT Solutions Adoption and Trends’ report also shows the impact economic uncertainty is having on the market.

Griffin says as organisations become cautious with their IT expenditure decisions on purchasing are being passed further up the chain.

Although business unit managers are still the key decision makers — 37.4% — Griffin says it will pay for solution providers to start cultivating relationships at a higher level in the organisation.

“To optimise chances of sale, vendors should be building multitiered relationships within organisations. They will need demand generators within the IS department, end-user groups as well as strong relationships with high-level executives to get final approval.” she says.

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