The problem:How can I guarantee that a software supplier will
provide the post-implementation support that is promised?
The solution:
Get a written commitment
First and foremost - get it in
writing. So often commitments are made verbally and believed by the
purchaser, but are never taken onboard by the supplier. The
promised support therefore needs to be formally defined, documented
and agreed. It is then useful, although not always essential, to
incorporate this agreement into the legal contract for the software
supply.
This approach will generally help with the second key issue -
ascertaining whether the supplier can deliver the support they
promise. A formal commitment to deliver will usually cause the
supplier to verify that they can deliver. But the purchaser can
also check this - ask about staff numbers, experience, workload,
other commitments and support infrastructure/tools.
Also, take references from other customers - preferably not through
the supplier - about the quality of the support they have received.
Andrew Davies, Cranfield School of Management
Spend time on research and contract
It is
worth researching the supplier's reputation and current practices
properly by identifying and talking to some of their other
customers.
Once assured that they have the resources and processes in place to
deliver what you need, take the time to put together a contract
that works for both of you, prioritising your requirements and
including appropriate service level agreements and practical
penalty clauses.
You need to use both sticks and carrots. Becoming important to the
supplier will guarantee their attention, and being in a position to
help them with references will ensure you receive the best service
they can offer.
Ollie Ross, Tif
Exploit your commercial leverage
You can't
guarantee anything - but you can take action to minimise the risk
and consequential impact of the supplier failing to perform.
- You have commercial leverage over the supplier since you are
potentially a reference site for other clients considering using
the supplier. You can also form an alliance with other users of the
software to improve your bargaining power.
- You need a robust contract that defines the relationship
between your organisation and the supplier. The contract should be
backed up by a solid service level agreement that details exactly
what the supplier has to deliver.
- Depending on the value of the contract, you may wish the
supplier to provide a performance bond or some other form of
guarantee. This is, in effect, an insurance policy which can be
invoked if the supplier fails to perform or becomes
insolvent.
You should ensure that the software source code is protected by an
escrow agreement. This will give you access to the source code when
certain conditions have been met - for example, should the supplier
become insolvent.
Anthony Harrison, The NCC Group
Choose your supplier carefully
Unfortunately, there are no guarantees in this world. The most
important thing is to be diligent in your selection of supplier.
The end result depends largely on how much preparation you do. You
need to:
- Take time to clearly document your support requirements. This
will speed up dealings with potential suppliers.
- Do your homework on which suppliers to approach. Read the
journals, look for testimonials preferably independent ones.
- Insist on a number of references and make sure you pick the
ones you approach.
- Prepare a list of questions to ask suppliers/ referees and
carefully analyse responses. Read between the lines. Look for
evidence.
- Make sure your service level agreement and contract are
properly constructed to provide you with the required leverage if
it comes to it.
Clearly, the performance of some suppliers is likely to drop off
once the sale is complete and the "courtship" is over. Show them
that you are not to be taken for granted by proactively driving
service reviews, escalation and issues resolution. If you make
enough fuss, you will get things sorted out.
Hugh Macken, Certus
Forward planning is key
The key issue here
is forward planning. In large-scale implementations, detailed
arrangements for such support should be included within the main
software supply contract. Examine the terms covering this closely
before the contract is signed. Where such support is provided
annually under a maintenance contract, study the small print of the
contract carefully. Look for details of out-of-hours support, the
conditions surrounding support of older versions of the software as
well as the current one, and any limitations on the use of
telephone or Web-based helplines.
Where support is an issue, user groups may be able to provide
assistance - such groups can also help to persuade reluctant
suppliers to reconsider their support arrangements.
On a related matter, you should always consider the provision of a
right of escrow in your supply contract. This is intended to at
least provide you with access to software source code in the event
of the demise of the software supplier.
David Hughes, Deloitte & Touche
Cover potential issues in contracts
Any
project involving the implementation of complex software will test
the relationship between an organisation and its software supplier.
Even in successful projects there are likely to be operational and
support problems. If you are aware of the possible outcomes, you
can address these in both the main delivery contract and the
support contract.
In the main delivery contract, a warranty period may be defined,
with a supplier commitment to fix the faults according to agreed
priorities. Other issues to cover include success criteria for
delivery sign-off, knowledge transfer to support personnel,
relevant documentation, and potentially an upgrade plan for the
next release. A large final payment at the end of the warranty
period should focus the software supplier on ensuring that these
deliverables are met.
In the support contract, it is important to differentiate between
the incidents that can be managed in-house and those that must be
routed to the supplier. If an effective filter is not in place, the
costs can escalate dramatically. To avoid this problem, a company
should allocate the necessary competencies both to negotiate the
contract and to ensure that the support processes are effective.
The question is a good one to debate with the supplier before the
development starts, in order to build a partnership with clear
accountabilities.
Sharm Manwani, Henley Management College