how to pick a technology vendor: top 6 questions to ask

HOW TO PICK A TECHNOLOGY VENDOR Top 6 Questions to Ask

Companies often seek technology vendors to help with issues they do not have the expertise or bandwidth to handle.

Choosing The Right Vendor Is Critical

HOW TO PICK A TECHNOLOGY VENDOR


Selecting the right technology partner is much like choosing a spouse and should be approached with (almost) as much thought and deliberation.

The right choice can set you up to gain a strategic competitive advantage.

The wrong choice can lead to frustrating, budget-busting, and poor quality results and more importantly, can severely slow the momentum of your digital transformation.


How can you be sure you’re picking the right vendor?

Check references and ask the right questions

This will allow you to probe deeper and encourage references to shed light on problems they wish they had avoided or how the vendor helped move tough issues to resolution.

Even amidst glowing reviews, these insights can be extremely valuable to your vendor selection and contract negotiations.


Avoid the “Reality” Bomb

Did you get all of the functionality you expected from the initial project or were unplanned follow-up projects proposed to complete work you thought was already included?

You need to understand exactly what results will be achieved in the first project and what will be in follow-up projects before you commit.

Question 1:

Too often, vendor sales teams have a tendency to over promise in order to get your signature before their implementation team comes in and drops the “reality” bomb in your lap.


Question 2:Did they complete the project within the original cost and timeline estimate provided prior to contract execution? If not, why not?

It’s important to understand what control you have as project scope and expectations change.

When you bring on a vendor who promises to deliver on the cost and schedule estimate they provide, you expect them to hold to that budget.

Budgets & Timetables


Question 3:If there was an increase in the budget due to a “scope change,” what prevented you from anticipating that change before contract execution?

By asking this question, you can get some insight into how good a job the vendor does understanding what you want and need before agreeing to the scope you contract them to do.

Anticipating Scope Change

Throughout the project, you will be faced with decisions about whether to drop something from the scope in order to meet the original estimate or add something that you discover along the way.


Question 4:Were you happy with their performance during the project (design quality, communications, etc.)? Why or why not?

Don’t settle for a simple yes or no response to this question. Be sure to ask follow-up questions to understand how they handled conflict, miscommunications, and alignment.

Performance & Team Satisfaction

Some vendors invest a lot in their marketing and sales pitch. Too often, after the deal is done, you find yourself working with a completely different team of people.


Question 5:Do you still work with the vendor today? Do you have alternative vendors that could do what they do for you?

Does the client continue to work with the vendor because what was built is so customized that no other vendor could support it? Or do they continue the relationship because it’s a good fit and a productive working relationship?

You want to understand whether you will be “locked in” to this vendor once you start down the road of implementation with them.

Ongoing Relationship


Question 6:If you could do it all again, what would you do differently prior to executing the initial contract/SOW?

Vendor references (even glowing ones) provide a real opportunity to learn from the mistakes of others.

Anticipating Problems

Ask them to help you avoid the pitfalls they fell victim to. There are some problems you simply cannot anticipate and would only discover through experience.


Don’t be afraid to ask a vendor for additional references if the ones provided fail to give you the insight you need to make a well-informed decision.

Just as it is with a marriage, you’re going to have to live with the choice you make and all the challenges that come with it. So choose wisely!

Future Point of View has the experience and the savvy to assist any organization in making complex technology vendor selection decisions. We have helped many different organizations, across a range of industries, to research, select, and contract with vendors. We help lay the foundation for building lasting, productive relationships with these vendors. Involving us in your vendor selection process offers a number of specific benefits including:

Stronger Contracts and Agreements

Negotiation of Better Terms and More Fair Pricing

and much more…

We Will Play the Difficult Role as the “Bad Guy”

For more information about Future Point of View please visit FPOV.com

how to pick a technology vendor: top 6 questions to ask

Technology