Negotiating the final solution

Many organisations overlook this part of the process and the value it can bring. Knowing when and what to negotiate can result in significant savings without impacting on the outcome of the selection.

Negotiating the consulting services offered by the vendor largely depends on the scope and hours required to deliver on that scope. From that working out a rate per hour is simple enough and this should be in line with industry standards. The key is ensuring the scope is narrow enough and the hours reasonable based on the agreed scope, project objectives and business requirements.

Negotiating the software can bring results based on timing and the strategy for this negotiation taken to the vendor. Depending on whether you are negotiating with a reseller of directly with the vendor will also impact on the ability to negotiate as margins between these two will differ.

Hardware is in many cases a commodity, ensuring you are getting a reasonable deal is not difficult by doing some research. Buying this through the vendor however usually does make coordination easier and ensures ownership of the entire solution by the vendor.

If you are going to create real value in this process in cash terms, this is where to do it.