| What
You Should Know About Software Vendors vs. Service Providers |
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Should
you allow your software vendor to provide
services to your project, such as implementation
services? Should you allow your services provider
to create large blocks of custom code for
you? Before I answer these questions, let
me outline the skills differences a software
vendor needs versus those of a services provider
in order to do their daily work.
Upgrades and Maintenance Software has a lifecycle. Past the concept, creation, and documentation of software, there is an ongoing lifecycle of maintenance and upgrades. Software vendors must learn to manage this lifecycle. Service providers, however, more commonly create one version of the software, and the customer often takes over its maintenance. The service provider is very likely to never return to that customer to do any more work with that software. Although some large companies contract for support of their custom/customized system, this work is not necessarily done by the same company that handled the initial implementation. Companies that provide ongoing maintenance services tend to have different cost structures and different expertise to go along with this task. Of course, with purchased software, the customer pays an annual support fee to allow for upgrades and maintenance, and these costs are spread across many users. With custom development, the customer pays for all upgrades and maintenance separately, bearing the entire burden. Back to the Questions Question: Should you allow your software vendor to provide services? Answer: Keep in mind that a software vendor’s number one focus will always be their product. Services are the poor cousin. If their people make comments to the effect that their product is so great that you shouldn’t want/need to change anything about it, avoid them. If they think services are just something that are “thrown in” along with the product, that’s another bad sign. Question: Should you allow your service provider to create custom software for you? Answer: As much as possible, you want to get the things you need to do business included in the software you purchase so that its upgrade maintenance is included in your annual support fees. This is especially important with large items. If your software vendor is uninterested in developing the item you need or won’t create it in the timeframe you need, only then should you consider custom development and only when the custom module significantly benefits your operations. Make sure you discuss all of this directly with your software vendor, and it can be helpful to include your service provider as well. If your service provider and software vendor are one and the same, discuss potential additions to the core system with someone responsible for that, rather than passing the requests through the person(s) doing the implementation. They will rarely be the same people. |
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