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United Kingdom
United Kingdom
Key definition
Procurement definition What does Procurement mean? Procurement describes how organisations plan, source, tender for and contract for works, goods and services, including appointing contractors, consultants and suppliers on construction projects. In practice it spans private purchasing and public procurement subject to statutory rules. In England, Wales and Northern Ireland, public procurement is governed by the Procurement Act 2023 (which replaces the Public Contracts Regulations 2015), alongside sector-specific regimes (including utilities, concessions and defence/security) and guidance. Scotland applies the Public Contracts (Scotland) Regulations 2015 and the Procurement Reform (Scotland) Act 2014. In Ireland, EU-derived regulations apply (for example S.I. No. 284/2016, S.I. No. 286/2016 and S.I. No. 203/2017)....
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In-house lawyers’ guide to procurement and IT: global agreements, RFPs, supplier oversight, software licences, anti-bribery controls and data backups
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Practice notes
Overview of the IT and procurement departments
It is usually larger organisations with several domestic locations and/or overseas offices that maintain a procurement function, chiefly to streamline supplier use across sites and secure group discounts. This team typically oversees major purchasing choices for the whole organisation, including software and hardware vendors, as well as contractors. This setup is prevalent in bigger enterprises with many national sites and multinational footprints, enabling consistent supplier use across locations and access to pooled discounts. They take charge of key organisation-wide purchases, from software and hardware to contractors across the organisation.
At times, they also manage the procurement of external legal services, particularly when large international firms support the business globally; however, the legal department will usually insist on at least oversight, if not full control, because you generally hold clearer insight into likely costs and tighter day-to-day control of legal spend.
When identifying suppliers, the procurement function commonly considers questions such as:
- what the business requires, in line with the organisation’s strategy?
- should the organisation deliver the product/service in-house, or contract it out?
- can a single supplier meet all needs, or are several providers necessary?
- how best to locate suitable suppliers, eg through consultants...
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Web page updated on 21/05/2026
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