Electronic procurement (e-procurement) has been
labelled as a tool that can improve competence and performance while enabling
simplicity and automation (Phillips & Piotrowicz, 2006; Hendrickson &
Mahnke, 2005). Davila et al (2002) explained e-procurement as any
technology that facilitates the acquisition of goods and services by a private
or public organization over the internet, a view that is substantiated by
Parida & Parida, (2005).

 The e-procurement value chain comprises indent
management, e-tendering, e-auctioning, vendor management, catalogue management
and contract management. Indent management is the workflow involved in the
preparation of tenders.

Profitability is
defined as the operating income divided by sales, as a measure of
profitability. Whether you are recording profitability for the past period or
projecting profitability for the coming period, measuring profitability is the
most important measure of the success of the business. A business that is not
profitable cannot survive. Increasing profitability is one of the most
important tasks of the business managers. Managers constantly look for ways to
change the business to improve profitability.

Supply Chain Managers are to
take into account the effects of IT and know how to make a commercial case for
electronic procurement.  Today,
businesses are increasingly demanding in terms of decisions to be taken with
regard to e-procurement and to manage the huge number of influences and
pressures.  However, in spite of huge
stress on the benefits associated with e-procurement, research on the topic is
lacking with regard to the integration theory of strategic choice. 

The present procurement
process consists of traditional manual procedures that are slow and even slower
systematic process of purchasing entries (Hawking et al., 2004)

Most developing and developed countries
governments would like to implement public e-procurement technology in such a
way, as to enhance transparency and accountability in business procurement
processes. The basic principle of the procurement is straightforward: to
acquire the right item at the right time with the right price. The process
should be open, objective and transparent. However, corruption in public
procurement processes leads to problems such as lack of accountability and
transparency, lack of political control and auditing, weak professionalization
of the bureaucracy and many more.

 To overcome these concerns relating to
corruption in the government procurement, information and communication
technology (ICT) can play an important role to reduce corruption by promoting
good governance (Bertot,Jaeger & Grimes, 2010), enhancing relationships
between government employees and citizens tracking activities, monitoring and
controlling the government employees and reducing potentiality of corrupt
behaviours. ICT enabled technology especially public e-procurement plays an
important role for minimizing the risk of corruption in public procurement
processes (OECD, 2008).

1.2       Statement
of the problem