Sunday, November 8, 2009

Supplement your team with carefully chosen vendors

From law to software, using outside expertise to round out the team is common. In software, 97 percent of organizations use consulting services for some aspect of their software initiatives at some time according to VarBusiness/Reality Research. Obviously, choosing the right vendor partner is key. Here are my top tips for doing it right:

  • Take time to pick a good provider. The difference between a top and bottom performer is a factor. Don't rush to find a vendor because you have a urgent, current problem. Treat the selection like recruitment process for an executive in your firm.
  • Ask around. In a meeting with a vendor, it's pretty easy for both sides to put on their "game face." A set of reference checks can provide insights to how the vendor has performed over the years.
  • Look at the firm’s long-term track record. Here’s a sad reality of service firms—the barrier to entry is low—stop by Kinko’s, print a business card, and you can be a consultant.
  • Make sure you’re comparing apples to apples. Unlike cars or detergent, services are harder to quantify. Ask questions about what’s in the bid, what’s outside of the scope, and how inevitable changes will be handled.

Tom's Takeaway: While using outside vendors to complete projects is extremely common selecting the appropriate vendor takes work and attention to detail. Invest in the process and you'll be rewarded with a valuable addition to your team.

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