--- title: 5 Obstacles That Can Derail a Services Procurement Program  description: Discover five common obstacles that can derail a services procurement program and learn how to improve adoption, governance, supplier performance and value. image: https://blog.allegisglobalsolutions.com/hubfs/5%20Obstacles%20That%20Can%20Derail%20a%20Services%20Procurement%20Program.png --- AGS Blog Header Toggle navigation [![Allegis Global Solutions](https://blog.allegisglobalsolutions.com/hubfs/ags/logos/AGS-Logo_reversed.svg) Global Workforce Management Solutions - Allegis Global Solutions](https://www.allegisglobalsolutions.com/) [Skip to Content](https://blog.allegisglobalsolutions.com/5-obstacles-that-can-derail-a-services-procurement-program#main-content) - [Research](https://www.allegisglobalsolutions.com/research) - [Advisory and Transformation](https://www.allegisglobalsolutions.com/advisory-and-transformation) - [Managed Services](https://www.allegisglobalsolutions.com/managed-services) toggle menu - [Managed Service Provider (MSP)](https://www.allegisglobalsolutions.com/managed-services/managed-service-provider) - [Contingent Workforce Supplier Management](https://www.allegisglobalsolutions.com/managed-services/managed-service-provider/supply-chain-management) - [Direct Sourcing Solutions](https://www.allegisglobalsolutions.com/managed-services/managed-service-provider/direct-sourcing) - [Procurement Solutions](https://www.allegisglobalsolutions.com/managed-services/procurement-solutions) - [Recruitment Process Outsourcing (RPO)](https://www.allegisglobalsolutions.com/managed-services/recruitment-process-outsourcing) - [Direct Sourcing Solutions](https://www.allegisglobalsolutions.com/managed-services/direct-sourcing-solutions) - [Capabilities](https://www.allegisglobalsolutions.com/managed-services/capabilities) - [Acumen](https://www.allegisglobalsolutions.com/managed-services/capabilities/acumen) - [Ignite Consulting](https://www.allegisglobalsolutions.com/managed-services/capabilities/ags-ignite-consulting) - [Partners](https://www.allegisglobalsolutions.com/managed-services/capabilities/partners) - [Industries](https://www.allegisglobalsolutions.com/managed-services/industries) - [Consumer and Industrial Products](https://www.allegisglobalsolutions.com/managed-services/industries/consumer-and-industrial-products) - [Healthcare](https://www.allegisglobalsolutions.com/managed-services/industries/healthcare) - [Life Sciences](https://www.allegisglobalsolutions.com/managed-services/industries/life-sciences) - [Financial Services](https://www.allegisglobalsolutions.com/managed-services/industries/financial-services) - [Information Technology](https://www.allegisglobalsolutions.com/managed-services/industries/information-technology) - [Insights](https://www.allegisglobalsolutions.com/insights) toggle menu - [Blog](https://blog.allegisglobalsolutions.com/) - [Podcast](https://www.allegisglobalsolutions.com/insights/podcast) - [White Papers](https://www.allegisglobalsolutions.com/insights/white-papers) - [Case Studies](https://www.allegisglobalsolutions.com/insights/case-studies) - [About](https://www.allegisglobalsolutions.com/about-us) toggle menu - [News & Events](https://www.allegisglobalsolutions.com/about-us/news-and-events) - [Press Releases](https://www.allegisglobalsolutions.com/about-us/news-and-events/press-releases) - [Awards](https://www.allegisglobalsolutions.com/about-us/news-and-events/awards) - [Events](https://www.allegisglobalsolutions.com/about-us/news-and-events/events) - [AGS In The News](https://www.allegisglobalsolutions.com/about-us/news-and-events/in-the-news) - [Careers](https://www.allegisglobalsolutions.com/about-us/careers) - [Contact Us](https://www.allegisglobalsolutions.com/about-us/contact-us) - [Locations](https://www.allegisglobalsolutions.com/about-us/locations) - [Search Site](https://www.allegisglobalsolutions.com/search) - Select Language Americas [English](https://www.allegisglobalsolutions.com/en) APAC [English](https://www.allegisglobalsolutions.com/en-au) EMEA [English](https://www.allegisglobalsolutions.com/en-gb) ### Stay Ahead of What’s Happening in Your Industry by Subscribing to The AGS Blog Be the first to know about trends shaping the workforce industry. When you join, you’ll get a free digital copy of “The Universal Workforce Model™: An Outcome-First Guide to Getting Work Done.” Coauthored by industry thought leaders Simon Bradberry and Bruce Morton, this book takes you on journey to harmonized workforce management.   ![UWM\_Spread (1)-min](https://blog.allegisglobalsolutions.com/hubfs/UWM_Spread%20(1)-min.png "UWM_Spread (1)-min") - [Blog Homepage](https://blog.allegisglobalsolutions.com) # 5 Obstacles That Can Derail a Services Procurement Program October 22, 2026 [![](https://blog.allegisglobalsolutions.com/hs-fs/hubfs/DBC%20Headshot.jpg?width=40&name=DBC%20Headshot.jpg) By David Clevenger](https://blog.allegisglobalsolutions.com/author/david-clevenger) [Procurement Management](https://blog.allegisglobalsolutions.com/topic/procurement-management) There is always a reason not to start. Maybe your most important suppliers will resist a new way of working. Perhaps business stakeholders will see the program as another layer of procurement bureaucracy. Your technology landscape might already be complicated. Or leadership may wonder whether the change required to implement a [services procurement program](https://www.allegisglobalsolutions.com/en/managed-services/procurement-solutions) will deliver enough value to justify it.  Those concerns are legitimate. But waiting for them to disappear is not a strategy. There will never be a perfect time to launch a services procurement program. Competing priorities, difficult conversations and unanswered questions are part of any significant change. The organizations that make progress are not the ones that eliminate every uncertainty before taking the first step. They are the ones that understand what could get in their way, prepare for it and move forward anyway. That matters when organizations can spend hundreds of millions of dollars on statement of work (SOW) engagements while maintaining surprisingly limited visibility and control over how that investment performs. In my experience, I’ve seen organizations with more controls around how it purchases pens than how it manages a multimillion-dollar services engagement. So, the question isn't whether your services procurement program will encounter obstacles. It will. What matters is whether you will be ready to navigate them. Below are five of the most common obstacles and how organizations can move through them. [![Related Article Moving Past the Hype: Making the Business Case for AI in Procurement  ](https://no-cache.hubspot.com/cta/default/322350/interactive-215937893531.png)](https://blog.allegisglobalsolutions.com/hs/cta/wi/redirect?encryptedPayload=AVxigLLYyolANP4EHK3qGwzAQ7G4jVczeO0KhGkyiIO9dRwyQfk2eXdYkiVC3bxywOME1vXMnSIUMI%2FDdvE9%2FZi%2FlRVQbN%2B%2F4oZv5n5dCpCC52wO2g%2FMax2Gpw9qVhxhMbKTXkqzMBMEUI89O%2FLB%2Fzsaly3TQVpGlPNRmc92%2Bag0gmRD8LHVsys9IRHUPQUuAT3%2FrmaZjxWD3P%2F1X7%2FostosZSTLPP%2F1RVgqxTtWGYZ9yl6T%2BAr12BD0vppNr5MS3vDZ%2Bg%3D%3D&webInteractiveContentId=215937893531&portalId=322350) ## 1. Stakeholders Don't See a Reason to Participate Services procurement programs are often established by procurement, HR or a combination of the two. But those teams aren't necessarily the people who will use the program every day. The people initiating SOWs and engaging consulting partners may sit in IT, engineering or elsewhere across the business. If the program makes their jobs feel slower or more complicated, they may simply find another way to get the work done. That makes stakeholder adoption fundamental to the program’s success. Consider the scale of the visibility problem: Industry estimates suggest that [40% to 60% of complex contingent and project-based labor may be unaccounted for](https://www.workmarket.com/blog/rogue-spend-what-is-it) in financial planning, forecasting and budgeting. Without that visibility, organizations cannot effectively manage spend, risk or supplier performance. Policies alone aren't necessarily the answer, either. A mandate can tell people they have to follow a process, but it doesn't automatically make them see value in doing so. In some cases, rigid thresholds encourage workarounds. The better approach is to understand what matters to the people being asked to change: - How the program makes their jobs easier - What information is provided that they don't have today - What risks it can help them manage - What frustrations it can remove Adoption builds when participation makes sense to the stakeholder, not simply because procurement says it is required. That also means accepting that adoption may be incremental. You don't need every stakeholder to participate on day one to begin demonstrating value. Small, logical changes can establish credibility and create momentum. As people experience the benefits, the program has a stronger foundation from which to grow. **The Takeaway:** Give stakeholders a compelling reason to participate, not just a requirement to follow. ## 2. Critical Suppliers Resist the Program Supplier adoption can introduce another challenge. One of the biggest concerns organizations have before launching a services procurement program is: What happens if a strategic supplier refuses to participate? When the supplier provides business-critical capabilities, has deep institutional knowledge or maintains influential relationships with senior stakeholders, the perceived risk can be enough to stall an entire initiative. While that fear is understandable, it shouldn't prevent progress. A common mistake is allowing resistance from one or two strategic suppliers to determine what happens with the rest of the supply base. If an organization works with 1,300 services suppliers and one won't participate, that does not mean the other 1,299 need to remain outside the program. Starting elsewhere can allow the organization to establish the model, demonstrate its value and create a stronger case for bringing resistant suppliers into the fold later. Supplier participation also shouldn't be framed entirely around what suppliers are being asked to give up. Organizations need to clearly articulate what participation looks like and what's in it for the supplier. As companies gain greater visibility into their supply bases and make more strategic sourcing decisions, participating suppliers may have opportunities to strengthen their position within the organization. However, the buying organization must be willing to stand behind the operating model it has chosen. There will be difficult conversations. Some will involve suppliers with considerable influence. That's why executive alignment needs to exist before those conversations begin. Leaders must agree on the program’s objectives, operating model and expectations for supplier participation — and be prepared to reinforce those decisions consistently when influential suppliers or internal stakeholders push back. Without that visible support, exceptions can quickly undermine the program’s credibility and adoption. **The Takeaway:** Build momentum across the broader supply base while working through resistance from critical suppliers. ## 3. The Process Starts Too Late and Ends Too Early Procurement teams naturally devote considerable attention to sourcing and competitively bidding requirements. But an effective services procurement process is much bigger than the sourcing event in the middle. What happens before and after can be even more important. On the front end, organizations need [visibility into what work is entering the pipeline](https://www.allegisglobalsolutions.com/en/workforce-insights/case-studies/procurement-in-motion) via a clear intake process. When someone in the business needs work completed, that intake creates an opportunity to ask basic but consequential questions early: - Is this truly a SOW opportunity? - Is it staff augmentation? - Is the engagement being classified correctly? - Is the work time-and-materials or milestone-based? The person trying to deliver an engineering or IT project may have little reason to understand those distinctions. [Their priority is accomplishing the work.](https://blog.allegisglobalsolutions.com/ai-and-orchestration-start-with-the-work-not-technology) But improper classification can introduce risk and increase cost, particularly when someone places work on a SOW because it provides an easier path through the organization. The same principle applies after the contract is signed. For milestone-driven work, organizations should understand whether suppliers are achieving agreed milestones, whether timelines are slipping, whether specific suppliers continually require extensions and whether the organization is receiving what it expected. That information can become supplier intelligence that informs future decisions and evolves category strategies. This is where governance matters. The goal isn't simply to put spend through a process. It's to create an end-to-end view that allows the organization to understand what it is buying, how that work is progressing and how effectively its suppliers are performing. The rigor of the process isn't punitive; it provides the structure for true partnerships to develop. The irony is that external labor traditionally sits within indirect procurement even though some SOW engagements can directly contribute to products and services delivered to customers. Organizations may enforce extensive controls around relatively small indirect purchases while multimillion-dollar strategic engagements receive considerably less oversight. That should give leaders pause. **The Takeaway:** Don't mistake a sourcing process for an end-to-end services procurement strategy. Intake, classification, performance management, analytics and governance all matter. ## 4. Technology Becomes a Barrier Instead of an Enabler While technology should make a services procurement program easier to operate, it often becomes one of the reasons an organization never gets started. Most organizations begin with an existing technology landscape that may combine suite and point solutions for intake, sourcing, contracting, budget management, invoicing and payment. The challenge is not simply selecting another tool; it is understanding how a services procurement program should fit across that ecosystem, including which systems should support each stage of the process and how information should move among them. Without clarity, organizations may struggle to create a connected, end-to-end process. That complexity becomes more apparent when you look beyond intake and sourcing. An organization may already rely on a combination of systems across the services procurement lifecycle, with a VMS potentially supporting part of it. The goal is to create a connected foundation that supports efficient workflows while capturing the data needed to understand spend, supplier performance and opportunities for improvement. Without that architectural clarity, a seemingly straightforward process can become fragmented. That's where organizations can get stuck. The problem isn't necessarily that they fail to see the value of technology. Instead of focusing on what technology the organization needs, a better approach can be asking what the operating model needs technology to enable. This may mean using existing capabilities where they work, connecting systems where necessary and addressing true capability gaps rather than assuming a new platform is always the answer. Technology also introduces costs, which can create another hurdle when the business case for services procurement begins with a promise to reduce spend but implementing the program requires new investment. The answer isn't to wait for a perfectly integrated technology ecosystem. It's to [understand the operating model first and determine how technology can support it](https://www.allegisglobalsolutions.com/en/workforce-insights/case-studies/revitalizing-procurement): - Where does work enter the process? - Who needs to interact with it? - Which systems are already involved? Where could duplication or additional steps create friction? - What information needs to move between systems to support an efficient, connected workflow? What data needs to be captured to create visibility into spend, supplier performance and opportunities to inform category strategy? Those questions help shift the conversation away from technology itself and toward what the program actually needs the technology to enable. **The Takeaway:** Understand the operating model first, determine what the existing technology ecosystem can already support, identify the true capability and integration gaps, and evolve the solution from there. ## 5. The Business Case Stops at Cost Savings Cost savings matter, but if savings are the only reason you're giving people to support a services procurement program, don't be surprised when some stakeholders aren't persuaded. At the end of the day, different groups care about different outcomes. Procurement is often the stakeholder most directly focused on savings. HR may place greater importance on visibility, risk management and correctly classifying work. Business leaders may care more about knowing whether a project will finish on time, whether it will stay within budget and which suppliers consistently perform. That distinction is important because those groups all play a role in whether the program succeeds. Imagine the value of telling a business stakeholder that you can save another 5% on a critical project. However, if that stakeholder's primary concern is delivering the project successfully and on time, better supplier performance data or early visibility into missed milestones may be far more compelling. Therefore, a services procurement program needs a value proposition that extends beyond a savings percentage. Ask yourself if it can: - Improve visibility? - Reduce implementation, performance and cost risks? - Generate supplier intelligence? - Provide clearer performance information? - Help the business understand whether it is receiving the outcomes it paid for? Those benefits can make participation meaningful to stakeholders beyond procurement. And when more of the organization understands the value, the other obstacles become easier to address. **The Takeaway:** Savings can help build the business case, but broader business value helps build the coalition required to make the program work. ## The Biggest Risk May Be Standing Still None of these obstacles is a reason not to launch a services procurement program. They are reasons to prepare for one. Organizations launching a first-generation program need to understand the challenges likely to limit adoption and value. More mature organizations face a different question: Are they focusing on the levers that continue to create value, such as milestone management, competitive bidding, supplier consolidation and demand management. In either case, success requires determination. Programs don't operate perfectly from day one. Progress comes from anticipating challenges rather than expecting to avoid them. Organizations that establish a clear vision, align leadership behind it and plan for how they will respond when obstacles emerge are better positioned to keep moving forward. Leadership alignment can't rest with a single champion. If a program depends on one person and that individual leaves, priorities change or an influential stakeholder pushes back, the initiative can quickly lose momentum. A sound business case and a shared vision for the operating model give the organization something sturdier to work from. So, get ready for those conversations. Understand what matters to procurement, HR and the business. Know where supplier resistance is likely to emerge, think through the process from intake through performance management, understand how the existing technology ecosystem can support the operating model, where systems need to connect and where true capability gaps remain, and define value in terms the entire organization can understand. Organizations do not need to solve, augment or replace their entire technology landscape before they begin. Then start. If you're waiting for the perfect time, you're likely to keep waiting. You don't need every variable resolved before you begin. You need a clear view of the obstacles, a plan for meeting them and the confidence to take the first step. 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[Share on facebook](http://www.facebook.com/share.php?u=https://blog.allegisglobalsolutions.com/5-obstacles-that-can-derail-a-services-procurement-program&utm_medium=social&utm_source=facebook) [Share on linkedin](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.allegisglobalsolutions.com/5-obstacles-that-can-derail-a-services-procurement-program&utm_medium=social&utm_source=linkedin) [Share on twitter](https://twitter.com/intent/tweet?original_referer=https://blog.allegisglobalsolutions.com/5-obstacles-that-can-derail-a-services-procurement-program&utm_medium=social&utm_source=twitter&url=https://blog.allegisglobalsolutions.com/5-obstacles-that-can-derail-a-services-procurement-program&utm_medium=social&utm_source=twitter&source=tweetbutton&text=) ![](https://blog.allegisglobalsolutions.com/hs-fs/hubfs/DBC%20Headshot.jpg?width=160&name=DBC%20Headshot.jpg) Written by [David Clevenger](https://blog.allegisglobalsolutions.com/author/david-clevenger) David Clevenger, head of sourcing and advisory for North America at Allegis Global Solutions, brings over 25 years of experience in the procurement services space. He began his career at pioneering software and services company FreeMarkets where he developed widely adopted strategies for functional alignment and assisted in developing total-cost bidding technologies, for which he holds a patent. Since then, he has worked in many different facets of the industry, including group purchasing and consulting. He is a recognized expert in procurement transformation, strategic supplier management and stakeholder alignment, and has been honored nine times on Supply & Demand Chain magazine’s annual “Pro to Know” list. ![subscribe](https://blog.allegisglobalsolutions.com/hubfs/subscribe.svg "subscribe") [Subscribe](https://blog.allegisglobalsolutions.com/5-obstacles-that-can-derail-a-services-procurement-program#open-subscribe-form) ## About Us We’re the leading provider of workforce solutions. Meet Allegis Global Solutions. [About Us](https://www.allegisglobalsolutions.com/about-us) ## Contact Us A smarter way to work begins with a conversation. 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