5 IT procurement mistakes that cost businesses millions (And how to avoid them)
IT procurement is the process of sourcing, purchasing, and managing the tech tools a business needs to run. This includes everything from laptops and software to cloud services and infrastructure.
When done right, it keeps your operations smooth, your team productive, and your budget under control. But when done poorly? It can lead to wasted millions, underused tools, security risks, and frustrated employees.
This article is here to help you avoid those expensive slip-ups. We’ll walk through five of the most common IT procurement mistakes and, more importantly, show you how to steer clear of them.
Let’s get in.
Key takeaways
- Align every tech purchase with a clear IT strategy to avoid misfits and wasted spend.
- Always consider the Total Cost of Ownership (TCO), not just the initial price.
- Do your homework before choosing a vendor to avoid lock-in, poor support, or compliance risks.
- Involve all relevant stakeholders—tech and non-tech—to make smarter, user-informed decisions.
- Never skip security and compliance checks. One oversight can lead to data breaches and hefty fines.
Table of contents
- Mistake #1: Buying without a clear it strategy
- Mistake #2: Ignoring the total cost of ownership (TCO)
- Mistake #3: Overlooking vendor due diligence
- Mistake #4: Failing to involve the right stakeholders
- Mistake #5: Neglecting security and compliance requirements
- Your trusted partner in procurement
- Final thoughts
- FAQs
Mistake #1: Buying without a clear it strategy
If you are buying tech gadgets just because it’s trendy or “everyone is using it”, it is not a strategy. It’s a shortcut to waste.
Many businesses fall into the trap of collecting shiny tools that don’t actually solve their problems.
They invest in software, hardware, or platforms that don’t align with where the business is headed. And months later? No one’s using it, or worse, it’s slowing things down.
Your IT purchases should always support your business goals. If the tool doesn’t help you move forward—automate something, improve collaboration, boost customer experience—then it’s probably not worth it.
How to avoid this mistake
Before making any tech decision, pause and ask: “Does this fit into our bigger picture?”
Create an IT roadmap that’s tied to your business strategy. Involve the people who actually use the tools. When everyone’s clear on the “why,” you’re far more likely to choose the right tools.
So… how do you actually create an IT roadmap?
Think of an IT roadmap as your technology game plan. To build one:
- Start with your business goals. What are you trying to achieve in the next 1–3 years?
- List the tools you’ll need. What kind of tech will help you get there faster, cheaper (be wary of cheap though), or smarter?
- Prioritize. Some tools will be nice to have. Others will be critical. Start with what matters most.
- Involve the team. Your IT team, operations, and even customer service will give you real insight into what they need, what’s working and what’s not.
- Keep it flexible. Your roadmap isn’t set in stone. Review and tweak it regularly as business needs change.
Mistake #2: Ignoring the total cost of ownership (TCO)
A cheap deal can be very expensive.
It’s easy to fall for a low price and ignore what comes after. But when you factor in ongoing maintenance, software updates, training your team, and potential downtime, that “affordable” solution might turn into a money sucking machine.
For IT procurement, the price tag isn’t what matters. You have to prioritise value over time.
How to avoid this mistake
Don’t just ask, “How much does it cost?” Ask, “How much will it cost us to own and run this over the next 1–3 years?”
This is where TCO analysis comes in. It helps you make smarter decisions by showing the full financial picture before you commit.
How do you use TCO analysis?
TCO (Total Cost of Ownership) is your tech reality check. To use it, break down each option by:
- Upfront cost: How much it costs to buy, license, or subscribe
- Implementation: Time and cost of setup, migration, customization
- Training: What it’ll take to get your team comfortable with the tool
- Maintenance and support: Ongoing updates, bug fixes, help desk support
- Downtime risks: If it fails or slows down, how much does that cost your business?
Create a simple spreadsheet and plug in numbers for each of your options. You’ll quickly see which solution is a smart investment and which one could quietly drain your budget.
Mistake #3: Overlooking vendor due diligence
You’ve got a deadline, a budget, and a vendor promising the moon. That’s a tempting offer.
But rushing into a vendor partnership without doing your homework is how a lot of businesses end up stuck with slow tools, bad service, or hidden fees they didn’t see coming.
This is where the phrase vendor lock-in becomes your worst nightmare. Imagine being stuck with a tool you hate, just because switching would be too expensive or complicated.
How to avoid this mistake
Before you sign anything:
- Compare vendors side-by-side. Don’t just go with the first one that sounds good.
- Check reviews and referrals. What are other businesses saying? Look beyond the testimonials on their website.
- Assess their SLAs (Service Level Agreements). What happens if something breaks? What’s their response time? What’s their refund policy?
You’re not just buying a product; you’re starting a relationship. Make sure it’s with someone who’ll pick up the phone when things go wrong.
Mistake #4: Failing to involve the right stakeholders
Procurement isn’t a solo sport.
When one team (usually IT or finance) makes all the decisions without involving others, it creates friction. The new tool gets bought, but the people who have to use it didn’t ask for it and don’t want it.
It results in low adoption, lots of complaints, and yet another underused tool collecting digital dust.
How to avoid this mistake
Before making purchasing decisions, you should:
- Involve both technical and non-technical teams. IT, finance, operations, and customer service.
- Listen to the people who will use the tool daily. What do they actually need? What’s not working with the current setup?
- Include them early. Don’t just bring them in when it’s time to “train.” Involve them during selection.
Mistake #5: Neglecting security and compliance requirements
You have to buy tools that meet the industry security standard so you are not opened to certain security risks.
From customer data leaks to malware-ridden devices, security oversights can cost you more than just money. Add regulatory fines and loss of trust, and you’ve got a full-blown crisis on your hands.
The worst part? Most of these disasters start with one simple mistake: not checking if the new tool or device meets compliance and security standards.
How to avoid this mistake
Every purchase, whether hardware or software, should go through a security and compliance checklist before approval. Some questions to ask:
- Is this vendor compliant with industry standards?
- How is data stored, encrypted, and protected?
- What happens if there’s a breach? Do they have incident response protocols?
Work with your IT and compliance teams to set up a simple process so nothing slips through the cracks.
Need a trusted partner in procurement? gamp’s got you.
If you’re tired of overpaying for underperforming tech or worried that your next IT purchase might turn into a mistake we’ve got good news.
At gamp, we help businesses like yours avoid these common procurement pitfalls. Whether you're buying new or refurbished devices, our products are carefully vetted for quality, security, and performance.
We also make things budget-friendly, offering:
- Flexible financing (so your cash flow stays healthy)
- Expert device matching based on your business needs
- After-sales support and repair options (because life happens)
In short? We make smart, secure, and strategic IT buying easier so you can focus on growth, not gadget regrets.
Let’s help you get it right the first time.,
Final thoughts
IT procurement isn’t a complicated sport. But it should be intentional.
A few smart steps, like aligning with strategy, involving your team, and checking the fine print, can save you from expensive mistakes down the line.
So before you hit “buy,” pause. Think bigger. And make decisions that move your business forward.
If you’re ready to get started, reach out to us at gamp, and we will get you what you need.
FAQs
What is IT procurement, exactly?
IT procurement refers to the process of sourcing, purchasing, and managing technology products and services a business needs to operate effectively.
How do I create an IT roadmap?
Start by identifying your business goals, then map out the technology needed to support those goals over time. Involve key stakeholders from different departments to make sure everyone’s needs are considered.
What is Total Cost of Ownership (TCO) and why does it matter?
TCO includes all direct and indirect costs of a purchase—like training, maintenance, upgrades, and downtime. It's essential for budgeting accurately and avoiding surprises.
How do I assess vendor reliability before buying?
Look at independent reviews, request references, compare SLAs (Service Level Agreements), and test their support responsiveness. Don't just go by brand name.
Why should non-technical teams be part of procurement decisions?
Because they’re the ones using the tools. Their feedback helps you choose solutions that are actually useful, improving adoption and ROI.
What’s a quick way to check for security and compliance before buying tech?
Create a simple checklist that covers key areas: encryption, data storage, user access control, and compliance standards (like GDPR or ISO 27001).