Hardware is but one part of
computerizing a business’ operation. You will seldom go wrong with choosing the
right ones. However, software, the other part, is a little more complex animal.
Anything in software can go wrong and remember that unless you are able to make
a systematic study, you will end up with the wrong product. In fact, unless
your software development company is
able to perceive your organizations needs in its totality, the whole exercise
of computerization can go wary.
When you look around for a software
developer, there are at least two aspects that you need to take a close look at
– the developer’s experience as it relates to your needs and the technologies
they use in developing your products. Not all developers start with the
software from scratch; more often standard software is customized to customers’
needs. If your needs are exclusive and you need a unique product, then the only
way to meet your needs is to hire a
custom software development company.
Once you are satisfied with the
developer company’s competence in meeting your requirements, you can begin with
the negotiation process. If your vendor won’t relent on the price front in the
beginning, you can change their stance by simply telling them that you have
others shortlisted to do the work. Negotiating a deal is very tricky in
software business, but nevertheless you can do it. Many times, the vendor will
begin with a big quote and as the negotiation process gets closer, they will be
relenting and more accommodating.
Here are 3 tips that will help you
close a deal at prices much cheaper than with what you had started.
1. Never tell
your vendor that your company has given you a free hand and a big a budget to
play around with. Instead tell them that you have a budget and you are obliged
to say within its bounds. Also make it clear that, you have shortlisted couple
more vendors and negotiations are in progress. This will encourage the vendors
to come down to a realistic price level. But don’t press them for price cuts
that will encourage them to produce sub standard software. After all, you
should remember that they need to spend money on experienced coders, and hiring
coders is an expensive affair.
2. If the
quote that a vendor gives is too complex and has too many riders in it, you
should ask them to simply it as much as possible. If the proposal has difficult
to understand clauses, you could be taken for a ride in the form of hidden fees.
A vendor might say that they will provide training for a minimum number of
people without actually revealing the number. This is a red alert. Ask them to
be clear about what they are saying. Don’t ever leave anything to chance.
Midway through after you have paid an upfront fee, withdrawing from a deal can
hurt you more than the vendor.
3. As in any
other process, software is not made and implemented on a single day. There is a
period of evolution during which improvements need to be made as you discover
that changes are needed. It so happens that, vendors keep the source codes away
from the users. This they do to have a firm hold on you. Without the source
code, you will have little option but to go back to the vendor every time you
want a change or improvement to the software. Therefore, bring in this issue
when you negotiate a deal. The little price you pay for the source code is
worth every penny.
