There are a number of important factors that organizations take into account while selecting the most appropriate IT vendor for their business. Here however, we present the 8 most important and common factors that organizations consider in evaluating vendor(s) in today’s competitive business world.
Why do companies that apparently have nothing whatsoever to do with technology invest big amounts of money in IT projects? The bottom line is that they all want the overall efficiency and Quality of their end product or service to nourish and improve. Maintaining quality standards and providing quality service to facilitate customers and end users is the key to win their confidence in the firm’s goodwill. This would mean that while evaluating a vendor for your IT project, make Quality your priority. You can only hope to deliver good quality through this investment if your vendor delivers good quality to you.
As a simple example imagine that you own a retail store and wish to sell online, for most of your target audience buys online. The vendor you select can either make a website that is very user friendly and provides a wonderful interface with the most secure transaction systems; while it can also create a website prone to hacker attacks and flawed security. At the end of the day, it only takes a couple of Credit card frauds to cost you a life time of bad word of mouth and customers worth thousands of dollars in sale.
The point is that while selecting vendors prefer those that provide some assurance for their Quality; better yet, select the ones that have been certified by a renounced, well-reputed Quality assurance service provider
Price or cost of the project quoted by the vendors has always been considered as one of the most important aspect of vendor selection criteria. However, it is the “Value-for-money” that matters the most. Price alone can and should never act as the governing principle or you might end up preferring a cheap vendor selling a failed project over a costly vendor selling an excellent product. Value of money can thus act as a governing principle.
3. FINANCIAL HEALTH/STABILITY
The financial stability of the vendor is another important criterion to consider before making your choice. If the vendor itself isn’t financially sound, it can never become a reliable source for your organization because in order to provide quality product using excellent expertise one must also possess such resources.
4. PAST PERFORMANCE RECORDS
Firms must also carefully examine the performance history of the vendor. If the vendor seems to have shown good results, maintains a happy customer base and seems to have sustained its quality of performance over the years it is probably a good investment to do business with such a vendor. Even those vendors that are good but show inconsistency in their performance are risky business partners.
Come back later to read the Next 4 factors in selecting the right IT vendor for your organization.