Strategic Insights into Public ICT Procurement

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School of Business | Bachelor's thesis

Date

2024

Major/Subject

Mcode

Degree programme

Tieto- ja palvelujohtaminen

Language

en

Pages

41

Series

Abstract

Public Information and Communication Technology (ICT) procurement in Finland represents a significant economic activity, while also carrying broader societal implications. Despite the potential, public procurement is often marked by delays, budget overruns, and unmet expectations. Inefficient procurement methods, conflicting requirements, and limited market dialogue deter supplier participation, reduce competition, and increase costs. For ICT vendors, public procurement offers a major business opportunity. However, the lengthy and resource-intensive bidding process requires a careful balance between competitiveness and profitability. Vendors must allocate significant sources to bid preparation with no guarantee of success. Furthermore, the complex regulatory environment and limited communication with public buyers make it difficult for vendors to showcase their capabilities effectively. Procurement laws and procedures are often perceived as overly restrictive and unsuitable for managing complex and innovative ICT procurements. Nevertheless, opportunities for greater flexibility and collaboration exist but are frequently underutilized due to misconceptions, inadequate procurement expertise, and risk aversion. Successful ICT procurement demands expertise in legislation, technology, and market offerings, all aligned with organizational needs and capabilities. The pretender phase offers valuable opportunities for public-private interaction, with early dialogue shown to improve outcomes. Moreover, vendors who understand public procurement and its inherent constraints and opportunities are better positioned to navigate the process and achieve favorable results. This bachelor’s thesis examines the regulatory frameworks, procurement methods, and key challenges shaping public ICT procurement in Finland. It also explores strategies for vendors to better position themselves in the public sector and secure new opportunities. Improving vendor success contributes to wider societal outcomes by ensuring innovation, enhancing competition, and increasing procurement efficiency.

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Thesis advisor

Bragge, Johanna

Keywords

public procurement, sourcing, ICT, technology, sales

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