Enterprises are rethinking how software is purchased
Leaders from multiple industries recently gathered for a roundtable to discuss how AI, governance, and cloud services are changing software procurement.
Published on 15th July 2026
As enterprises accelerate AI adoption and modernise their operations, traditional procurement processes are struggling to keep pace with increasingly fragmented software environments, subscription-based services, and growing governance requirements.
During the “Simplifying Technology Procurement in Hong Kong” roundtable, organised by Jicara Media and hosted by AWS, IT, procurement, finance, and risk leaders discussed how software purchasing models designed for an earlier era are now creating friction across the enterprise.
Participants from sectors including banking, insurance, hospitality, shipping, and retail described procurement cycles that are often slowed by siloed purchasing, compliance requirements, vendor onboarding complexities, and uncertainty around emerging AI technologies. At the same time, organisations are under pressure to move faster.
“Procurement teams are no longer just focused on cost control or compliance,” noted Vincent Wong, who leads the Hong Kong partner business at AWS. “They are increasingly becoming part of broader business transformation.”
From physical assets to software sprawl
Participants said many procurement frameworks were originally built around physical assets rather than fast-moving digital services.
Ashish Jain, Director of Technology & Applications at AIA, said one of the biggest challenges is ensuring that new software aligns with business needs while also meeting security, governance, and data residency requirements.
“We have to evaluate the product from multiple lenses,” Jain explained. “You need to make sure it meets security protocols, governance requirements, and data residency obligations. You also need confidence in the vendor’s financial stability.”
A participant from the banking sector said business users’ understanding of and trust in data remains a major challenge for AI adoption.
“Behind AI is the data,” the participant said. “If the data quality is really bad, AI will give you the wrong decision.”
Balancing speed with governance
As software adoption accelerates, participants described growing tension between business agility and governance requirements.
Thomas Mak, Global Director, Strategic Procurement at Plaza Premium Group, said procurement teams are now dealing with a far more fragmented environment than before, especially as departments independently identify software requirements. “We operate globally and 24/7,” Mak said. “There is constant pressure to add automation and new systems, but every new tool creates another layer of complexity.”
One technology leader described how business units sometimes approach procurement late in the process, after software decisions have effectively already been made. “We get caught on the back foot because the demand is already there,” the executive said. “Then we have to do the reviews, governance checks, and evaluations afterwards, and that pushes timelines back.”
In regulated industries, the challenge becomes even more complex. One banking leader described how risk and compliance teams must evaluate not only technical requirements, but also evolving regulatory obligations across multiple jurisdictions. “The regulations are not always black and white — there are many grey areas, especially when data crosses borders.”
They added that user requirements are often poorly defined during procurement discussions, creating delays later in the approval process. “If the requirements are not detailed enough, risk teams have to keep going back with more questions.”
Managing long-tail vendors
Participants also highlighted the operational burden created by managing large numbers of smaller software vendors.
Arun Saksena, Global Lead: Strategy, Customer and Channel Programs, AWS Marketplace at AWS, noted that while most enterprise spending may go toward a relatively small number of strategic suppliers, procurement teams are increasingly overwhelmed by the long tail of smaller vendors and SaaS providers. “The challenge is that procurement teams end up spending disproportionate amounts of time managing smaller contracts,” Saksena said.
One procurement leader said many software offerings now appear functionally similar from a procurement perspective, making it difficult to distinguish between vendors beyond pricing and implementation support. “From the user side, a lot of the software looks the same. I can’t really tell the difference,” they said. “What becomes important is whether the vendor can actually deliver what they promise.”
Others noted that implementation quality often matters more than product functionality itself.
“For me, the most important thing is the people implementing the software,” another panellist said. “I’m implementing a very important large system, but the implementation team is really bad.”
The growing role of AI in procurement
Jain described how AIA has begun using AI-powered contract analysis tools to identify risks, compare revisions, and flag unusual clauses during procurement reviews. “These tools help procurement teams identify risks buried inside contracts much faster,” he explained.
The organisation is also exploring AI across employee productivity, customer operations, and risk management functions. “We are looking at how AI can improve turnaround time, productivity, and risk reporting,” Jain said.
Participants noted, however, that many AI initiatives still remain stuck in pilot stages.
Kunal Narang, ASEAN Lead for AWS Marketplace, said many organisations are enthusiastic about experimenting with AI, but struggle to move projects into sustained production environments. “There are many pilots happening,” Narang said. “But organisations are still trying to understand the risks around governance, compliance, and long-term operational use.”
At the same time, participants acknowledged that employee adoption remains a major challenge.
“It’s not enough to simply introduce the tools,” one participant said. “You need to change behaviour and demonstrate how people can actually use them in their day-to-day work.”
Procurement as a transformation function
Despite the operational challenges, panellists agreed that procurement is gradually evolving beyond its traditional administrative role.
Rather than functioning purely as a gatekeeper or cost-control mechanism, procurement teams are increasingly being asked to support transformation initiatives, accelerate software deployment, and help business units adopt new technologies more effectively.
“The faster procurement teams can help business units evaluate and deploy technology, the more they become part of the transformation journey,” Vincent Wong said.
The discussion also highlighted growing interest in cloud marketplaces and more standardised procurement models, although many participants said relationship-driven procurement remains deeply embedded within enterprises.
The roundtable made clear that procurement models are evolving alongside enterprise technology. As organisations adopt AI and cloud services, procurement teams are being pushed to balance speed, governance, cost visibility, and operational flexibility.
How are you adapting to procurement's transformation?
Something that is actively happening in your organisation? Or something that hasn't happened for you yet? Or anything in between - we'd love to hear your story.
Get in touchSource
Image Credit
Khatawut Chaemchamras via Vecteezy