Are You Using Social Networks To Aid In IT Purchasing?

By Joseph B. Kappernick


IT purchasing is a task filled with uncertainty, price disparity and overspending. In an effort to find more objectivity and knowledge about new technology solutions, many IT purchasers are turning to an unlikely source - social networking. Here they are able to benchmark pricing and obtain valuable insights from other IT professionals, which can help them bring more leverage to the negotiation table and optimize purchasing.

But, can social networking really help IT buyers make better purchases? Many say yes, as these survey results from a recent Forrester Research study called "IT Purchasing Goes Social" suggest:

60 percent of IT decision makers say that they have made purchases influenced by social networking

73 percent have connected with a vendor via social networking sites

58 percent say they use social networks to learn from other IT professionals

Other top reasons given by the IT decision makers surveyed include:

To find information quickly

To acquire the necessary context to connect with vendors

To reach a broader network

Social networks are starting to realize the value they can provide to IT purchasers through their sites and are even starting to cater to it. One LinkedIn Group, IT Spend Management, offers a platform that lets peers to share helpful information on complicated negotiation details so they can be better prepared.

Fair market value for new technology is a very difficult thing to verify for many IT buyers. During the negotiation phase, vendors are known to offer very different prices from one customer to the next, depending on the circumstances. Social networking is a very powerful tool for buyers because it allows them benchmark pricing and enter into negotiation better prepared.

Social networking has evolved a great deal from its early days as a simple way to connect to others. Businesses are finding more ways every day to use these sites to grow their revenues and reduce costs. IT purchasing has certainly benefitted and will likely continue to as social networking reduces vendors' advantages in the marketplace.




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