Why is the success rate low in Projects with Independent IT Software Vendors?

There is not much to debate about the issues and complexities that come while outsourcing a particular IT project work such as SAP, Web or Mobile App implementation projects to an independent software vendor, be it for implementing new innovation or technologies.

Setting out on this client vendor arrangement is a long haul relationship that requires huge trust on both sides. This basic relationship tends to keep running into inconvenience from the beginning when the vendors get to be in charge of taking decision past their specialized piece and calibre, especially when there are varying perspectives on what is being conveyed from the client.

These inconveniences or issues lead to significant time and energies being wasted and diverted from the actual project to dealing with conflict management. Either way these analytics and digital marketing projects are always a challenge and before signing any such contract with a vendor, certain factors must be considered. Here we explore precisely that.

Independent Software Vendor
Independent Software Vendor

Some of the fundamental reasons of why the success rate is low in projects with Independent Software Vendors and it may not generally be the right approach.

1. Diverse Interpretations of Project Achievement:

          The client and vendor approach a task from two alternate points of view, neither of which ought to be disregarded. While both offer the shared objective of getting the work or task executed, the genuine mutual results and meaning of progress varies greatly.

  • Vendor & Team Approach:

The vendor is mostly keen on seeing the project executed in the minimum of time; while the immediate team is focused around the content and process of the execution, which also includes to some extent, the real execution of the project as desired by the client.

  • Client’s Focus:

The client’s perspective reaches far beyond that goal, focusing on the extensive outcomes resulting from the execution of the project and deal with the dangers, advantages and changes, if any.  It must also include the changes the company will experience throughout the process to include the initial implementation goals as well as any other parallel activities affected by the implementation, such as the change administration and on-going use and backing of the framework.

2. Nitty-Gritties-Out of Focus:

These contrasting points of view influence the objectives, expectations and methodology taken by every team member during the engagement. For instance, the vendor is ordinarily concerned about reaching the “go-live” date in the shortest of time span possible, as the contract facilitates the largest of the payments to happen around then, which influence the vendor to not be too concerned or focused about the in depth details and nitty-gritties of the project. 

3. The “Cream” Team:

 The point to ponder and decide upon is if the vendor has the required and requisite skilled resources and personnel to deliver the end to end solution? Due to their limited focus, vendors may not always possess the project resources that have the ability to manage beyond the technical aspects for a project which creates a skills and understanding gap and adversely effects the delivery of the entire project scope and if they do, will the vendor assign their ‘’A’’ team to your project? More often than not, if you are not their prime “cream” level client, you will not be allocated their best team.

Solution-Intermediary: 

Having a neutral third party or an intermediary in a client-vendor relationship can be highly beneficial and effective in ensuring a project doesn’t get bogged down when things go awry.

The third party or the intermediary will coordinate with both the parties involved to keep their end of the bargain and in return they will be responsible to both parties for delivering the approved and accepted scope of the work or project. This independent intermediary functions as a release valve that can protect and maintain the sanctity of the outcome of the project and also strengthens the vendor/client relationship.

So the next time you think of outsourcing your IT work to an independent software vendor, give this article another thorough read.

One comment

  1. Alisa says:

    Hello my name is Alisa and I just wanted to send you a quick note here instead of calling you. I discovered your Why is the success rate low in Projects with Independent IT Software Vendors? – ScopeWeaver page and noticed you could have a lot more traffic.

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