Maverick Buying: Challenges and Solutions
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Introduction
In the world of IT purchasing and technology procurement, maverick buying is a particularly widespread problem that poses significant challenges for companies. This article examines what maverick buying means in the context of IT procurement, its impact on companies, and how it can be avoided through effective procurement strategies.
Key Takeaways
- Maverick buying is costly - With an average rate of 25.6% in Germany, unauthorized IT purchases bypass negotiated terms and framework agreements, costing companies up to 24% in potential procurement savings while creating security risks and compliance issues.
- IT procurement is particularly vulnerable - Easy access to SaaS subscriptions, cloud services, and corporate credit cards enables departments to independently purchase technology, leading to duplicate licenses, shadow IT, and significant security vulnerabilities.
- Digitalization prevents maverick buying - Modern e-procurement platforms with self-service portals, automated approval workflows, and centralized IT catalogs address the root causes by making compliant purchasing faster and easier than going rogue
What is Maverick Buying and why is it problematic?
Maverick buying, also known as "rogue purchasing," refers to procurement activities that take place outside a company's established purchasing processes. Orders are placed independently by employees without involving the procurement department. The term "maverick" comes from procurement management and refers to employees who do not follow prescribed rules and structures.
Maverick buying is especially prevalent in the IT sector, as departments often have specific technical requirements and need quick solutions. Maverick buying in IT procurement typically includes:
- Independent ordering of software, hardware, or cloud services by IT staff or specialized departments
- Direct orders to new IT suppliers without review by the procurement department
- SaaS subscriptions and digital services charged to corporate credit cards
Causes of Maverick Buying in IT Procurement
Maverick buying in IT procurement arises from specific reasons that may be deeply embedded in company structures:
1. Technical urgency: IT staff often need specific software or technical solutions quickly and bypass the procurement process to avoid downtime.
2. Specialized requirements: Departments believe that the procurement department doesn't adequately understand their technical requirements and therefore order IT products independently.
3. SaaS subscription models: The easy availability of cloud services with monthly subscriptions tempts employees to pay for these independently with corporate credit cards.
4. Lack of IT-specific procurement processes: Without a modern e-procurement system with IT catalogs, it is more difficult to enforce compliance with technology procurement guidelines.
Consequences of Maverick Buying
The effects of maverick buying can be particularly serious in IT procurement and affect various areas of the company:
Financial Consequences
Maverick buying often leads to higher IT procurement costs, as negotiated terms and price advantages of framework agreements with software and hardware suppliers are not utilized. According to a study by the Leipzig University of Applied Sciences (HTWK), the average maverick buying rate in Germany is about 25.6 percent. The study also shows that consistent prevention of maverick buying can save up to 24 percent of total procurement costs. SaaS solutions in the IT sector often create duplicate structures and overlapping functionalities when departments independently procure IT products.
IT Security Risks
In IT procurement, maverick buying leads to significant security risks when unverified software or cloud services are implemented without involving IT security. This can lead to data protection breaches and security vulnerabilities that endanger the entire company network.
Compliance and License Issues
Non-compliance with IT compliance regulations can lead to legal problems. Software licenses in particular risk expensive audits and additional payments. Maverick buying in the IT sector also makes central license management more difficult and can lead to over- or under-licensing.
Detecting and Measuring Maverick Buying in IT
To combat maverick buying in IT procurement, it must first be identified and quantified. Important metrics include:
- IT Maverick Buying Rate: The proportion of IT procurement transactions that take place outside official processes
- Software Contract Utilization Rate: How often existing framework agreements with software providers are actually used
- Shadow IT: Identification of unauthorized cloud services and SaaS applications in the company network
- Duplicate Licenses: Overlaps in software licenses and multiple purchases of similar applications
Solutions to Prevent Maverick Buying in IT
An effective IT procurement strategy must combine various approaches to minimize maverick buying:
Digitalization of IT Procurement Processes
Implementing a specialized e-procurement system like equipme for IT products can significantly reduce maverick buying. Modern IT procurement systems offer seamless integration with existing ERP systems and IT management solutions. User-friendly IT catalogs with frequently needed software and hardware simplify and accelerate the ordering process. The equipme platform also enables transparent access to all available framework agreements with IT suppliers and automates approval workflows for software licenses, ensuring that even urgent IT requirements can be procured in compliance with regulations.
IT-specific Procurement Processes
The official IT procurement process should be designed as efficiently as possible to prevent maverick buying. Successful companies implement accelerated processes for urgent IT requirements and critical updates without losing control. Self-service portals for standardized software requirements significantly reduce administrative effort and shorten procurement time. A central Software Asset Management (SAM) solution for license management prevents over- or under-licensing and optimizes software costs. Regular review of software usage and compliance should be an integral part of the IT procurement process to identify risks early.
Training and Awareness for IT Security
IT staff and departments need to understand why compliance with IT procurement processes is important. Regular training on IT security risks from unauthorized applications creates awareness of the potential dangers of maverick buying. Clear communication of the financial benefits of bundled software licenses and clarification of the Total Cost of Ownership in IT procurement help to sensitize employees to the economic aspects. Particularly important is education about compliance risks with independent SaaS subscriptions, as these are often underestimated and can lead to significant legal problems.
Strategic Integration of the IT Department
Collaboration between procurement and the IT department is crucial for preventing maverick buying. Early involvement of procurement in IT procurement decisions ensures that all aspects - both technical and economic - are considered. Joint development of IT procurement strategies creates acceptance in both departments and improves compliance. A joint IT procurement team that combines both technical expertise and purchasing expertise can quickly evaluate new technical solutions and integrate them into existing procurement processes. With equipme as a central platform for IT procurement, all stakeholders are involved and transparency across the entire procurement process is increased.
Conclusion
Maverick buying in IT procurement is a particular challenge that many companies face. Through a combination of digitalized IT procurement processes, clear structures, and a culture of collaboration between procurement and IT departments, maverick buying can be effectively reduced.
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Studies show that companies can save up to 24 percent of total procurement costs by consistently preventing maverick buying. Particularly in the IT sector, where software licenses represent a significant cost factor, centralized procurement can lead to significant price advantages through volume discounts and better negotiating positions.
Cloud services and SaaS subscriptions are particularly vulnerable, as they often involve monthly payments and simple online ordering processes. Departments can easily book these services themselves with company credit cards. Maverick buying also frequently occurs with IT hardware such as peripheral devices, smartphones, or tablets, as well as with specialized software for individual departments, where there is often an immediate need.
The equipme platform offers a user-friendly solution that simplifies and centralizes the entire IT procurement process. Through a clear IT product catalog, self-service options for standard products, and automated approval workflows, the reasons for maverick buying are effectively addressed. The platform creates transparency about existing framework agreements and ensures that even urgent IT procurements can be carried out in compliance with regulations.
Maverick buying in IT procurement directly contributes to shadow IT – unauthorized technology deployed outside official IT channels. When employees purchase software, hardware, or cloud services through maverick buying, IT departments lose visibility and control over the technology landscape. This creates security vulnerabilities, compliance gaps, and integration challenges while making comprehensive asset lifecycle management nearly impossible.
Maverick buying, also known as rogue spending or off-contract purchasing, refers to purchases made outside of established procurement processes and approved supplier agreements.
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