Procurement in the information technology (IT) sector: challenges and opportunities

Abstract

Purchase of Information Technology (IT) goods and services has become a critical aspect in the operations of both the public and the private sector all over the world. The increasing focus on digitalization, e-governance, and the modern service delivery eco-system in Bangladesh has placed IT procurement to be very significant in the country. Nevertheless, even with advances in Public Procurement Act (2006), Public Procurement Rules (2025) implementation and the introduction of the electronic Government Procurement (e-GP), IT procurement is still hit by several challenges that curtail effectiveness, transparency and efficiency of the process. This study examines the issues and challenges of IT procurement, in particular as expressed in the area of government and the issues as seen in comparison to the commercial world. The research study has a mixed approach method by relying on both quantitative data based on surveys and qualitative data from interviews and focus group discussions with the procurement officials, IT consulting firms/suppliers, and policy experts. Government materials, scholarly research, and other best practices abroad are likewise tapped as secondary data to give context. These results point to some consistent issues of blurry or incomplete technical specifications/ToRs, over-prioritizing on the lowest bid compliance, the existence of a rigid legal and procedural system, a lack of technical expertise in the procurement department, poor integration between systems, and ineffective cybersecurity and data management. Most of these problems arise due to the incompatibility between the dynamic aspect of technology (rapid change) and the slow methodical procurement landscape. Simultaneously, the paper indicates the obvious chances to enhance IT purchasing. Venturing further, the increased functionality on the e-GP system, the acceptance of data analytics as a support in decision making, introducing new models of procurement like agile, modular contracting and developing the capacity of the procurement department are all expected to be promising reforms. Improvement in transparency, efficiency, and value of money can also be secured with the use of emerging technologies, including secure transactions via blockchain, an automated analysis via AI, and assets monitoring via IoT. The study is unique because it serves the needs of the literature by attempting to explore the Bangladesh context, which has not been explored much on the study of IT procurement. It also fills the divide between the legal and technological points of view and makes evidence-based policy and practice recommendations. The main suggestions are: refinement of the requirement definition, the inclusion of lifecycle costing during the assessment process, training of staff involved in procurement processes within IT-related skills, a greater flexibility of the procurement model, and better governance to make sure projects achieve their aim. Finally, This paper maintains that IT procurement with appropriate reforms promises to become the leading source of innovation and improved services to the people and digital transformation of a country. The results can be applied to the policymakers and procurement practitioners not only in Bangladesh, but also in developing nations, which experience the same issues.