A Step-by-Step Guide To IT Procurement In 2025

What is IT Procurement? Why Does It Matter?

IT procurement is the process of sourcing, purchasing, and managing the technology products and services a company needs. This includes everything from hardware and software to cloud services and more.

It spans the whole source-to-pay arc: a request comes in, requirements are clarified, vendors are sourced, terms are negotiated, the purchase is made, and the bill gets paid. 

An efficient procurement process has a massive ripple effect across the entire company. It improves day-to-day productivity, keeps a lid on security risks, ensures budgets stay on track, and dramatically shapes the employee experience for the better.

The Business Case for a Better Procurement Process

A modern, connected procurement flow pays for itself; first in time saved, then in dollars recovered, and finally in the lower risk profile you’ll enjoy.

Here is how that value shows up:

• Drives down costs: You can significantly reduce your IT expenses just by negotiating better deals, consolidating purchases, and eliminating waste from unused software licenses or duplicate apps. Effective management of third-party expenditures can release savings of between 7 to 12% on average.
• Improves productivity: Automating repetitive procurement tasks removes admin bottlenecks and frees up your IT team to focus on more valuable projects. Simpler workflows and faster approvals mean less time wasted on paperwork, and employees also get quicker access to all necessary tools.
• Reduces shadow IT: When the procurement process is too slow or cumbersome, teams often resort to unsolicited solutions, i.e., shadow IT. This introduces security vulnerabilities and compliance risks. A smooth and effortless procurement process won’t leave your employees tempted to bypass official channels for software and cloud services. 
• Improves decision-making: Technology-assisted procurement using specialized IT procurement tools gives you valuable data and analytics. This data lets you track IT assets better, inform forecasting for future needs, and gain a clearer understanding of spending patterns, all of which lead to better, data-led decisions.
• Scales with the business: As your organization grows, so do procurement needs. A well-structured process adapts to increased demand, multiple locations, and a wider vendor base without creating bottlenecks, so the system supports growth rather than holding it back.

Procurement might be invisible. But when you get it right, your organization can execute its bigger ambitions without hindrance by operational friction.

The Modern Step-by-Step IT Procurement Process

IT asset procurement feels daunting because there are just too many variables involved. 

Moreover, most organizations treat it as a rigid, bureaucratic process. 

However, a flexible procurement flow, like the one we’ll discuss now, brings clarity and order to how you find, buy, and manage technology.

Let's break it down. 

And if you’re looking to procure IT hardware, we’ll show you just how easy Workwize, an IT hardware lifecycle management platform, makes hardware procurement. 

1. Define The Need and Build the Business Case

Every purchase should start with this question: What problem are we trying to solve? 

Before you even think about vendors or products, you need to define the business needs. 

In this planning stage, you clarify the why.

Define the problem: 

Start by identifying the exact business issue the IT product or solution should solve—closing security gaps, streamlining workflows, cutting costs, or reducing risk. Ask yourself:

• How are we currently managing these activities?
• What would happen if we didn’t source this product now?

These questions help frame the baseline and highlight pain points, inefficiencies, or risks of inaction. A clear problem statement keeps the purchase focused and prevents wasted spend on shiny tools with no real impact.

Establish value and ownership: 

Next, map the problem to expected value. The solution should clearly save time, reduce costs, improve compliance, or unlock new opportunities. Go further:

• How will this tool be used in our organization?
• Who will use it, and how often?
  
  

This turns the business case from abstract benefits into practical use cases. Also, assign an owner who will be accountable for adoption and results.

Set success metrics: 

Define clear, measurable outcomes to measure the value of your investments. For example, reducing software onboarding time by 50% is much better than improving onboarding.

Don't waste time and resources evaluating solutions for a problem you haven't fully understood.

2. Conduct a Sanity Check

Now that you know what problem the procurement tool must solve, pause for a quick sanity check.

This step is necessary to weed out requests that are redundant, over budget, or doomed to fail policy reviews.

Here’s what to do:

• Check for existing coverage: Do you already have a tool, license, or hardware pool that meets the need? (e.g., a team asks for a new project management app while unused Asana seats are sitting idle).
• See if it aligns with your budget: Does the request fit within department thresholds and the current budget cycle? If it’s clearly outside limits, flag it early.
• Check for policy compliance: Is the request in line with procurement and security policies? Some categories, like tools storing sensitive data can’t bypass review.

3. Stakeholder Intake and Alignment

After the sanity check, create a structured intake process involving IT, finance, security, legal, and the requesting department. .

You can use a standard intake form that captures key details such as:

• Purpose and scope of the request
• Expected users and usage scenarios
• Budget range and funding source
• Target implementation timeline
• Security, privacy, and compliance requirements
• Must-have features vs. nice-to-have options

This form should live in a shared system, such as Jira, ClickUp, or even a simple Google Sheet so every request is visible, trackable, and accessible across departments.

Share this form across departments so every request comes in with the same baseline information that everyone can view.

Assign ownership of intake reviews to a specific team (usually procurement or IT) to ensure requests don’t fall through the cracks.

Finally, set clear accountability for approvals: who signs off before a request moves forward? Defining reviewers upfront avoids confusion later when different departments weigh in.

This early alignment avoids last-minute blockers when a department vetoes a purchase because requirements weren’t discussed upfront.

4. Find and Select the Right Vendor

With a clear business case, you can now explore the market.

Finding the right vendor(s) is significant, so dedicate enough time to this step.

Start by scanning the market and building a long list of potential vendors. Then apply basic filters before moving to a formal process. Eliminate vendors that don’t meet non-negotiables like security certifications, integrations with your existing stack, data residency requirements, or price range. 

This prevents wasting time on vendors that could never win the deal.

From there, you can run a formal process — often a Request for Proposal (RFP) or Request for Quote (RFQ) — to gather comparable information.

Your RFP package should be clear and concise. It needs to include

• The scope of the project and your detailed requirements,
• How will you score responses and weightings (e.g., functionality 40%, security 25%, cost 20%, support 15%)?
• Key security and privacy questionnaires,
• A plan for a scripted product demo or a small-scale Proof of Concept (PoC).

Read More: Procurement Outsourcing: A Comprehensive Guide for IT Teams

5. Run the competitive event

Once the RFP is ready, it’s time to initiate the actual vendor competition in a structured way. 

This keeps the process transparent and gives you solid, comparable evidence for decision-making.

You must now:

• Issue the RFP: Share it simultaneously with all shortlisted vendors to maintain fairness.
• Set deadlines: Define clear submission dates for RFP responses and schedule demos early to prevent stalls.
• Manage vendor Q&A: Allow vendors to submit questions and answer them in writing to all participants to ensure a level playing field.
• Run scripted demos: Provide vendors with a standard scenario to present so each one showcases the same features and workflows.
• Conduct the proof of concept (PoC): Test shortlisted solutions in your proper environment to validate claims and identify performance gaps.

Don’t proceed without running scripted demos. It forces every vendor to show you how their solution solves your specific problems, rather than letting them stick to their polished sales pitch. 

This allows for accurate, apples-to-apples comparisons. 

6. Evaluate Fairly and Down-Select

With the demos and proof-of-concepts complete, apply the scoring weights you defined in your RFP to compare performance objectively, rather than relying on subjective impressions. 

Go beyond the paperwork. Validate references from customers who share your size, industry, and use case, so the vendor delivers on their promises in real-world conditions. 

Finally, invite the top contenders to submit their best-and-final offers, giving them a chance to refine pricing, terms, and any proposed value-adds. 

7. Carry Out Deep Security and Privacy Due Diligence

Waiting until after a tool/service has been trialed and loaded with data to perform security checks can put you in a terrible negotiating position. You are forced to either accept unknown risks or derail the project.

Your due diligence should cover a few key areas:

• Certifications and compliance: Check if the vendor satisfies standard security certifications like SOC 2 and ISO 27001.
• Data handling and residency: Review their Data Processing Agreement (DPA). Look at where data is stored and what laws apply (e.g., GDPR for EU, CCPA for California). Confirm who their sub-processors are.
• Software supply chain: For critical software, understand its components (via a Software Bill of Materials or SBOM) to ensure you aren't inheriting hidden vulnerabilities.
• Financial health: Check credit ratings, funding stability, and leadership track record.
• Pen testing and vulnerability disclosures: Ask for recent penetration test results, vulnerability management policies, and whether they participate in bug bounty programs. Some vendors may also allow you to run your own validation tests.
• Business continuity and disaster recovery: Verify the vendor’s resilience if systems go down. Do they have documented RPO (Recovery Point Objective) and RTO (Recovery Time Objective)?
• Ongoing monitoring: Treat due diligence as a continuous process. Schedule periodic reviews, annual security questionnaires, or renewal-time checks to ensure compliance holds over time.

Getting this done early protects your organization and makes sure there are no nasty surprises just as you're about to sign the contract.

8. Negotiate the Contract and Finalize the Deal

Price tags can be deceptive. 

A vendor’s quote may look competitive on paper, but the real cost of an IT purchase emerges only when you factor in its whole lifecycle. 

This means looking beyond the base subscription or license fee and assessing all associated costs that you will bear over the product’s lifespan. 

Implementation charges, configuration work, and user training can easily equal or exceed the initial purchase price. 

Integration with existing systems often requires development effort or middleware, and ongoing support or maintenance fees can compound over time. 

This is also where you’ll come across Service Level Agreements, or SLAs. SLAs are really important as they will define clear, measurable performance expectations, but don’t just look at uptime guarantees. Check what happens if they’re breached. 

Strong contracts outline escalation paths, indemnities, and liability caps to protect your organization when things go wrong.

Another area teams often overlook: renewal terms. Negotiate them upfront so you’re not locked into unfavorable pricing or auto-renewals a year or two down the road.

Once you’ve negotiated the contract, you can go ahead and finalize the deal.

However, never rush this step. Ask many questions and establish clear communication with vendors and suppliers — procurement experts will also tell you the same thing.

Via Reddit

Pro Tip: Plan out an exit strategy in your SLA. The agreement must clearly state how you can get your data back in a usable format when the contract ends and ensure the vendor will delete their copies. 

9. Hardware and Device Procurement

For physical hardware procurement, consistency and efficiency are key. 

Start by standardizing device builds and creating role-based kits so employees receive the right hardware, peripherals, and configurations from day one. 

Where possible, leverage localized sourcing to reduce shipping times, avoid customs delays, and support regional compliance requirements. 

Pair these efforts with zero-touch enrollment, enabling devices to ship directly to end users while automatically provisioning the necessary settings, apps, and security policies. 

We recommend using Workwize for your hardware procurement. This is because it offers:

• Global vendor network without individual negotiations: Access competitive pricing and availability worldwide without the back-and-forth with multiple suppliers.
• Fast, localized shipping timelines: Source devices locally in each region to cut delivery times and avoid customs bottlenecks, ensuring employees get their hardware in days, not weeks.
• Zero-touch deployment: Ship devices pre-configured with required software and security settings so users can start work immediately.
• Automated procurement workflows: Centralize requests, approvals, and purchasing in one system to speed up fulfillment and reduce manual errors.
• Integration with ITSM and asset management tools: Sync hardware orders and lifecycle data directly with your existing IT systems for accurate tracking.
• Lifecycle & warranty tracking: Monitor device status from purchase to refresh or disposal, ensuring timely upgrades and compliance.

10. Plan for a Smooth Implementation

The work isn't over once a contract is signed. 

How you roll out the new technology/product is just as important as which one you choose. A great tool will fail if nobody knows how to use it or if it doesn't integrate with your existing systems.

This is where you’ll rely on change management.

Your implementation plan should include: 

• A clear timeline for the technical cutover
• A strategy for integrating the new tool with your existing stack
• A training program to onboard end-users effectively
• A pilot rollout to a small group before scaling to the entire organization
• A contingency plan and escalation channels for support if something breaks during deployment

Workwize’s zero-touch deployment is particularly valuable during the rollout phase for hardware. Devices arrive pre-configured and policy-compliant, so end users can power on and start working immediately without any manual IT intervention needed, even for remote hires.

11. Onboard and Manage your New Assets

Once a piece of hardware or a software license is purchased, it needs to be tracked and managed. 

Without a central inventory, you can’t manage what you don’t know you have. This leads to wasted spending on shelfware (unused software) and security vulnerabilities from unmanaged devices.

The onboarding process is straightforward but essential

• Record the asset (serial number, model, etc.) in a central database, be it a CMDB or IT Asset Management tool
• Assign the asset to a specific owner or department
• Configure devices and tools with the right policies from day one, and set future dates for refresh, renewal, or license audits
• Provide structured onboarding sessions, quick-start guides, or in-app training so users know how to get value from the new tool or hardware. Adoption will lag without intentional enablement.

With Workwize, you can manage all your hardware assets in one place. You can keep track of serial numbers, device usage, condition, warranty, and much more.

12. Simplify the Procure-to-Pay Process

Now begins the actual ‘procurement’ work — how your requests turn into paid invoices.

A clunky, manual process here creates bottlenecks and frustration. The solution is standardization and automation.

A modern procure-to-pay (P2P) system includes

• Centralized intake: A single form or portal for all requests,
• Automated approvals: Rules that automatically route requests to the right people based on cost and risk, and
• Three-way matching: An automated check that matches the purchase order (PO), the receipt of goods, and the vendor's invoice so that you only pay for what you ordered and received.

Automating these workflows frees up your teams from administrative headaches and creates an auditable trail for every purchase.

Mini checklist for the perfect purchase request

For a request to move smoothly, it must include:

• A clear business need
• The type of data the tool will handle (public, internal, customer).
• Who will be using it and how many
• A cost center for billing
• Confirmation that it's not duplicating an existing tool

13. Conduct a Post-Implementation Review

A procurement process shouldn’t end the moment a product is deployed. 

Schedule a review 30–90 days after go-live to measure adoption rates, check if the solution is meeting agreed-upon KPIs, and capture user feedback using surveys or focus groups. 

Look for gaps between vendor promises and actual performance. 

Document these findings — both successes and pain points — so they can inform contract negotiations, renewal decisions, and future procurement choices.

14. Manage Vendor Performance and Relationships

You must also actively manage your vendor relationships. It keeps you updated on whether they’re delivering on their promises and if you are getting the full value of your investment.

How do you do that? 

It’s easy: schedule regular Quarterly Business Reviews (QBRs) with your vendors to discuss performance against their SLAs, review any open support issues, and talk about their product roadmap. 

You can also monitor some essential KPIs like:

• Service uptime/availability: Percentage of time the service meets agreed availability targets.
• Incident response time: Average time taken to acknowledge and resolve issues.
• SLA compliance rate: Percentage of service level commitments met.
• Support satisfaction score (CSAT): User-reported satisfaction with vendor support.
• Cost variance: Difference between forecasted and actual spend.
• Delivery timelines: Percentage of deliverables completed on schedule.
• Security and compliance adherence: Number of audit findings or compliance breaches.
• Innovation/roadmap alignment: Progress against promised features or upgrades.

When tracking vendor KPIs for hardware, Workwize makes reporting simple. 

Because all device orders, deliveries, and service levels run through one platform, you can track fulfillment times, DOA rates, and SLA compliance without piecing together data from multiple suppliers.

15. Proactively Manage Renewals and Optimizations

SaaS and software renewals can be a major source of uncontrolled spending. 

Many contracts are set to auto-renew, and without a proactive system, you could be paying for things you no longer need.

The fix is a renewal calendar. Track every contract's end date and set automated alerts for 90 days out. This 90-day window gives you ample time to

• Review usage. If you bought 100 licenses and only 40 are active, it's time to downsize your plan
• Re-evaluate need. The tool needs to solve a critical business problem
• Negotiate. With usage data in hand, you have the leverage to negotiate a better deal or decide to exit the contract. Make sure to compare pricing against market standards.
• Check for shadow IT. Identify software in use that isn’t on the renewal calendar. These hidden tools create both unnecessary spend and security risk.

This single habit can release significant savings year after year.

For your hardware, Workwize centralizes this process, giving IT visibility into upcoming device refreshes, warranty expirations, and budget impacts so that you can handle renewals proactively instead of reactively.

16. Handle Offboarding and End-of-Life Responsibly

Finally, every asset has a lifecycle that eventually comes to an end. A responsible offboarding process is just as necessary for security, compliance, and sustainability.

When an employee leaves or a device is retired, you must

• Revoke all access to software and systems immediately,
• Retrieve all company devices,
• Securely wipe the data from the hardware, and
• Responsibly redeploy, resell, or recycle the device according to e-waste regulations.

If you’re handling hardware via Workwize, you can offboard employees easily and recover your hardware with:

• Centralized offboarding requests: Trigger device return workflows directly from your HR or IT system when an employee leaves.
• Global reverse logistics: Arrange pick-ups or return shipping from any location worldwide, with pre-paid labels and customs handling.  
• Automated device wiping: Ensure all returned devices are securely erased and reset before reuse or disposal.
• Refurbishment & redeployment: Ready returned hardware for the next user to maximize asset utilization and reduce waste.
• Sustainable disposal options: Comply with e-waste regulations through certified recycling partners.

This final step closes the loop; it also protects your data and minimizes your environmental footprint.

Read More: How To Choose the Best IT Procurement Services for Your Distributed Teams?

Common Procurement Mistakes And Their Fixes

Procurement often breaks down in predictable ways: requests get lost in Slack, approvals stall in inboxes, and deals are rushed. 

The fix, more often than not, is a few simple habits you stick to every time.

Problem 1: No Central Intake or Clear Approval Rules

Chaos begins when requests are informal and everyone is an exception. By the time IT, security, and legal all see a request, the window to negotiate or buy has often closed.

Solution: Use one form or portal for every purchase request and set clear thresholds for approval. 

For example, small purchases under $500 are auto-approved for managers, while larger or higher-risk items are automatically routed to IT, legal, or finance. This makes low-risk purchases faster and bigger purchases cautious.

Problem 2: Security and Privacy Checks Happen Last

Teams often trial a tool and load it with data, only to discover a paramount security red flag just before making a purchase. At that point, the choice is either to delay the project or accept the risk, giving the vendor all the leverage.

Solution: Ask a few simple security questions right on the initial intake form (like What kind of data will this touch?).

Maintain a list of pre-approved vendors that teams can choose from, and use a simple privacy assessment for any tool that will handle customer or employee data. This lets you clear safe requests in minutes and focus energy on the few that are truly high-risk.

Problem 3: Surprise Renewals and Unused Software

Without a central system, SaaS subscriptions auto-renew without review, and you end up paying for software licenses that nobody is using. Organizations waste about $21M annually on unused SaaS licenses, with 53% of applications either underutilized or not used at all.

Solution: Create a calendar that sends automated alerts 90, 60, and 30 days before a renewal date.

Before renewing, check usage data. If licenses are sitting idle, you can downgrade your plan or cancel the service to stop wasteful spending.

Problem 4: Inconsistent Device Setups and Shipping Bottlenecks

Every new laptop is configured differently, and shipping hardware to remote employees gets stuck in customs or paperwork delays.

Solution: Use a Mobile Device Management (MDM) tool to centrally configure all devices, ensuring they are secure and have the right software from day one. You can also keep a small buffer of pre-provisioned laptops for common roles.

For international shipping, standardize customs paperwork to make handoffs smooth.

Problem 5: Little to No Visibility from Request to Payment

Chasing the status of a request wastes everyone's time. Context is fragmented across emails, receipts get lost, and reconciling expenses at the end of the month becomes a chore.

Solution: Use a simple dashboard (AirTable or Jira) to track the entire process: from initial request and approval to invoicing and payment.

This gives everyone end-to-end visibility, creates a clear audit trail, and helps you spot and fix bottlenecks before they slow you down.

The thing is, none of these problems will haunt you later if you build your procurement workflow properly from the start. And we’ll tell you exactly how to do that.

Ease IT Hardware Procurement With Workwize

IT procurement can be a complicated process in many organizations. We hope our step-by-step guide to IT procurement helped you redefine or tighten your existing procurement strategy.

With Workwize, you can procure hardware for your employees across the globe and manage it from one centralized platform. You can trigger updates, remotely lock or wipe devices, track their location, or retrieve them, all from one platform.

Brands like Snapchat, DuckDuckGo, and many others trust Workwize to manage their IT.

Schedule a Workwize demo to learn more.

FAQs

How do we evaluate vendors fairly and quickly?

To keep things objective and fast, use a scoring matrix with your must-have features weighted by importance. Then, run scripted demos where you have every vendor perform the exact same tasks. 

This allows you to create an accurate side-by-side comparison that cuts through sales pitches and quickly shows which solution meets your needs.

Which security and privacy proofs should we require?

For any new software or vendor, you should ask for a few key documents to ensure they take security seriously. Request their most recent SOC 2 report and check if they have an ISO 27001 certification. Most importantly, always review their Data Processing Agreement (DPA) to understand exactly how they'll protect your data.

How do we ship laptops fast to new hires across regions?

Standardize your process. Create pre-configured laptop builds for different roles and use local sourcing whenever possible to avoid customs delays. 

For the fastest experience, use zero-touch enrollment like Windows Autopilot or Apple Business Manager. A new hire can unbox their laptop, connect to Wi-Fi, and it will configure itself automatically.