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Procurement and implementation of Information Systems is especially challenging due to the complexity of procuring unknown technology and the importance an information system has for different stakeholders in an organization. Procurement and implementation of information systems (IS) and services provides several challenges and problems to the stakeholders involved in the procurement and their implementation processes. However, these are not well established or understood, and there is a knowledge gap that needs to be covered. This paper presents results from a Delphi study, which involved 46 experienced IT managers, HRIS officers, and vendor representatives from various industries. The participants identified 98 challenges and problems related to IS procurement and implementation, and subsequently ranked the relative importance of the top critical issues. The study supports findings from previous research related to diverging stakeholder goals; challenges in balancing between objectives; in requirement specifications; and in too narrow cost focus. In addition to providing empirical confirmation of these previous propositions the study revealed new findings, such as benefits realization in IS procurement and implementation; critical issues of technological integration, negative impacts of IS constraints on stakeholders and measures to be taken to resolve the negative impacts of IS procurement and implementation and losses occurred due to IS constraints. The results provide a rich overview of IS procurement and implementation challenges and its negative impact on stakeholders in corporate sectors.


Introduction
Procurement and implementation of information systems (IS) and related services is challenging compared to acquisition of more standardized goods and services. Information systems often need to be customized to the needs of the industrial units (Keiichiro & Hajime, 2005). Procurement decisions are made early in the procurement process, when requirements are still uncertain (Saarinen & Vepsäläinen, 1994). The buyer may have to compare between competing, complex system options. Information systems can support this process (Davila et al., 2003), but research shows difficulties in implementing e-procurement. Furthermore e-procurement offers limited support in the process focusing mainly on the selection of vendors, but less on other parts of the process such as requirements specification, negotiations and contract monitoring.
This research focuses on information systems that are implemented for specific organizational purposes, such as enterprise resource planning systems and e-services tailored for the buyer’s needs and various negative impacts reflected due to IT constraints on stakeholders. We thus exclude acquisition of off-the-shelf software from this study. Outsourcing of IS development and implementation is a relevant critical issue in this research context, as complex systems often require customization and involve contracting with a vendor to tailor an existing information system or develop a new system altogether.
The IS procurement and implementation process is in itself challenging, as is the complexity of procuring new or unknown technology and then making every one familiar to work with the same IS. However, these challenges are not well researched and this project seeks to fill this gap.
The research question concerns the challenges and dilemmas that are typically faced in procurement and implementation of information systems and related services in the corporate sector and how it impacts stakeholders of the organisation.

Previous research
IS procurement and implementation of Information Systems has gained little attention from researchers, but some of the previous work on it in general carries relevance for this research question. This is introduced below. A summary of challenges and negative impacts specific to Information Systems constraints on stakeholders, and provide an overview of the previous literature in table 1.
IS procurement and Implementation constraints and its negative impacts
One of the previously identified challenges and negative impacts concerns the critical issue of various internal stakeholders with conflicting goals. Organizational buying involves multiple participants in a process (Wind & Thomas, 2001) where many purchasing decisions are influenced by various members of the buying center (Spekman & Stern, 1979). In addition, an organisation involves the complexity of satisfying needs of different stakeholders.
One line of previous work has focused on the negative impacts of conflicting goals in IS procurement and implementation constraints-
• Balancing the dynamic tension between
a) Competing socioeconomic objectives and
b) National economic interests and global competition as required by regional and international trade agreements;
• Satisfying the requirements of fairness, equity, and transparency; and
• Maintaining an overarching focus on maximizing competition.
There is also the critical issue of information asymmetry when procuring and implementing services from IS consultants (Dawson et al., 2011). Agency theory suggests contracts and monitoring of the work to limit opportunism from a vendor, but this may not be sufficient to cope with the problem as consultants have more knowledge of the problem area than the organisation. The challenge of consultant opportunism comes in addition to the challenge of competing interests from internal stakeholders and may necessitate a complex set of strategies.
The contemporary literature on IS procurement and implementation challenges and public procurement remains largely without an established theoretical base and there is limited empirical data to validate the conceptual and normative recommendations. The literature identifies a number of potential negative impacts, but there is little systematic research on additional challenges faced by stakeholders in IS procurement and implementation. A study of 4 ERP procurements in private sector shows the importance of adopting a stakeholder approach (P**n & Yu, 2010). The challenge of different stakeholders may be more important in the public sector than in private sector, but there is limited research on how it interplays with other challenges. The main findings from previous research on challenges related to procurement & Implementation of Information Systems and their negative impacts / challenges are summed up in Table 1. The table further shows the research approach and the analytical lens for these studies.

MBA HRIS Project Report on critical incidents of IT systems' constraints MBA HRIS Project Report on Critical incidents that reflects on stakeholders who got impacted negatively due to IT systems' constraints