Software Procurement outsourcing is the transfer of specified key procurement activities relating to sourcing and supplier management to a third party – perhaps to reduce overall costs or maybe to tighten the company’s focus on its core competencies.

As an indirect spend category, Software Procurement can be a good candidate for outsourcing. Although every situation is different and some businesses are more sensitive than others to handing over responsbility for negotiating and managing their software spend.

Some businesses choose to not outsource at all, but will entertain occasionally using external software Procurement consultants such as Silver Bullet Associates to help with specific supplier negotiations. 

Other businesses may outsource all their IT Procurement, and several consultancy companies (including the likes of IBM) are now entering the market as potential Business Process Outsourcing partners.