Welcome to today’s IT landscape, where the two worlds of human resources and procurement have become increasingly complex and more importantly, interconnected, as the greatest expense to most organizations these days, is that of human capital.To better manage this important and complex resource, HR and procurement professionals have had to collaborate and strategize more than ever before.
Things have drastically changed in the HR/procurement environment. The “traditional” procurement organization has evolved into a “Sourcing Services Organization” or “Strategic Sourcing Organization.” This more strategic function of procurement is now working more closely with HR. Sourcing professionals usually handle the high-value, high-risk, high-reward, and highly complex types of purchases (e.g., human capital), whereas procurement, is focused on the operations side (“procure to pay, invoicing and revenue recovery”). The trend is clear and more HR services are now purchased with sourcing and procurement departments used as an intermediary. Charter Global, seeing this trend and being a forward thinking IT services organization, plays an important and complimentary role to HR & procurement in helping clients find that right IT resource with the necessary skill set needed for their technology project. To be effective, HR and procurement must understand how to gain value from each otherand vendors, by building a relationship that helps generate efficiencies and, ultimately, more effective processes in the acquisition of IT talent and other project related services (e.g. Big Data, mobility, app development, etc.) for their companies.
Uniting HR and procurement has provided companies with a single view of their supply base, rather than each HR specialty knowing only about its own suppliers. This model can lead to cost efficiencies due to scale and scope of services provided to the overall organization. Charter Global had the foresight to implement this same approach, which allows for a seamless implementation of IT resources to its clients. Creating a consistent approach to vendor relationships not only helps the vendors come to expect a certain working relationship with your company, but can help ensure consistency in managing that relationship between procurement and HR as well.
Creating a relationship is not as easy as bringing HR and procurement teams together and asking them to collaborate. The teams must establish a strong working relationship that starts with a foundation of trust, mutual understanding and respect for one another’s competencies. Procurement and HR teams must engage with one another without one side trying to dominate the other. Both parties must come to the understanding that the ultimate objective is to meet the business goal (i.e., secure the right talent and services for the company’s needs) and that, in partnership, they will deliver a more valuable solution. Without this foundation of trust and respect, both HR and procurement will head in different directions, thus, compromising the strengths that each department brings to the table.
How does a partnership help you?
Partnering with a strong IT services organization like Charter Global gives you the ability to utilize your HR and procurement departments more efficiently, which ultimately makes both HR & procurement more productive in acquiring highly skilled human capital.