Articles and Publications
How to make sure you chose the right IT supplier for your business
18/Sep/2007
In 2003 a shocking 84% of the 421 IT services and / or goods providers surveyed failed to hit their targets in relation to budget, schedule and scope / functionality.* Given that IT products and services are rarely inexpensive it is important that when selecting an IT vendor a company, whether it is a large organisation or an SME, takes the time to ensure that it has selected the right vendor. As with the purchase of any goods and / or services for a notable value, it is essential that the purchaser makes sure that the provider possesses the right qualities and provides the necessary level of information so as to guarantee a good working relationship from the outset. Some of the key factors that all companies should take into consideration when selecting an IT vendor are set out below:
Good references – any quality IT vendor should be willing to provide references from existing clients who will vouch for their service record. Alternatively, select an IT vendor based on the recommendation of someone who has used the vendor in the past and rated its performance. Key factors to consider are whether the vendor is considered to be reliable and professional by past customers.
Good understanding of your requirements – this requires that the company purchasing the IT goods / services has someone internally who not only understand what the purchaser is looking for but is also able to explain this clearly to the provider. Similarly, it is essential to ensure that the provider has understood exactly what the purchasing company is after so that there is no confusion as to what is being supplied and purchased.
Specification – ensure that a well defined specification is put in place at the start of the project, which makes it clear exactly what is being agreed between the parties in relation to the IT goods / services being provided. The specification should build in Milestone deadlines with regards to performance and payment, along with all key objectives. Make sure that this specification fully addresses the company’s needs and also make sure that you get strong warranties that link in with the Specification.
Acceptance Criteria – The Acceptance Criteria need to be clearly defined in the Agreement so as to ensure that the purchasing company can test the Goods / Services being provided and ensure that at each stage of the project, the Goods / Services are meeting the agreed requirements and targets. It also gives the Company more control over the final product if they have been able to approve / reject each stage based on the agreed specification.
Dispute handling procedure – It is worth agreeing a dispute handling procedure in the Agreement as a precaution to any future disputes occurring further down the line, such as referring the matter to an expert who shall be agreed between the parties at the relevant time.
A good service level agreement – Finally, a good service level agreement is essential so as to ensure that once delivered, the Goods / services do what they are supposed to do and that if they don’t, the provider will come back and fix them until they do.
Please note that the above list is only a summary and before entering into any contract for the provision of IT goods and / or services it is recommended that you take legal advice as to your position. Should you wish to discuss any IT matter with a solicitor please contact any member of the expert IT team at Lee & Priestley, headed up by partner Louise Handley, who will be more than happy to help.
* Huber, N (2003) Hitting targets? The state of UK IT project management. ComputerWeekly.com
Good references – any quality IT vendor should be willing to provide references from existing clients who will vouch for their service record. Alternatively, select an IT vendor based on the recommendation of someone who has used the vendor in the past and rated its performance. Key factors to consider are whether the vendor is considered to be reliable and professional by past customers.
Good understanding of your requirements – this requires that the company purchasing the IT goods / services has someone internally who not only understand what the purchaser is looking for but is also able to explain this clearly to the provider. Similarly, it is essential to ensure that the provider has understood exactly what the purchasing company is after so that there is no confusion as to what is being supplied and purchased.
Specification – ensure that a well defined specification is put in place at the start of the project, which makes it clear exactly what is being agreed between the parties in relation to the IT goods / services being provided. The specification should build in Milestone deadlines with regards to performance and payment, along with all key objectives. Make sure that this specification fully addresses the company’s needs and also make sure that you get strong warranties that link in with the Specification.
Acceptance Criteria – The Acceptance Criteria need to be clearly defined in the Agreement so as to ensure that the purchasing company can test the Goods / Services being provided and ensure that at each stage of the project, the Goods / Services are meeting the agreed requirements and targets. It also gives the Company more control over the final product if they have been able to approve / reject each stage based on the agreed specification.
Dispute handling procedure – It is worth agreeing a dispute handling procedure in the Agreement as a precaution to any future disputes occurring further down the line, such as referring the matter to an expert who shall be agreed between the parties at the relevant time.
A good service level agreement – Finally, a good service level agreement is essential so as to ensure that once delivered, the Goods / services do what they are supposed to do and that if they don’t, the provider will come back and fix them until they do.
Please note that the above list is only a summary and before entering into any contract for the provision of IT goods and / or services it is recommended that you take legal advice as to your position. Should you wish to discuss any IT matter with a solicitor please contact any member of the expert IT team at Lee & Priestley, headed up by partner Louise Handley, who will be more than happy to help.
* Huber, N (2003) Hitting targets? The state of UK IT project management. ComputerWeekly.com
