B/OSS Vendors and Customers: Keys to a Good 'Marriage'

By David West
May 9, 2011

In my previous blog, I concluded that with a few exceptions, an outsourced vendor solution is typically a carrier's best option. In this blog, I'll discuss the next logical step to that outsourcing decision: how carriers can get the most out of their vendor partnerships.

A vendor/customer relationship is a lot like a marriage; to be successful it has to be built on mutual respect and a commitment to creating a win-win situation. And like a marriage, success requires having faith and trust in your partner. As with couples, the parties involved in these business relationships must respect the other's perspective and trust that they are equally invested in the success of the partnership.

Be Willing to Compromise

There has to be a give-and-take from both partners. Requirements, budget and timeline are the major project components the vendor and customer must work together to define. As the customer, you should be able to get what exactly what you want for at least two of the three. But, you should also be prepared to compromise on one – and the trade-off is typically between timeline and functionality versus budget. As the customer, you should drive these negotiations, based on YOUR priorities.

Requirements. At the start of the project, if you've identified 30 features or functions you'd like to have, by all means, give the full list to your potential vendor. However, be sure to identify the core requirements and prioritize the remaining requests. This approach allows vendors to provide multiple pricing options so you can make an optimal decision based on the relative value of the requested features versus the incremental cost.

Likewise, vendors have to be willing to identify items that they are unable to do or that will involve a great deal of incremental work to avoid setting unrealistic expectations.

Budget and Timeline. For a vendor, theoretically anything is possible, given enough time and money; however, the more complex the requirement, the more expense and time required to deliver it.

As with defining requirements versus requests, it's equally important to clearly identify budget constraints up front. Vendors are highly motivated to help customers succeed. To do so, they need to be an active participant in the process of determining how to optimize delivery of as many items as possible within the stated budget. Of course, this process requires openness, honesty and trust from both partners in the relationship.

Like cost, it's also important to set realistic expectations on delivery times. Resist the urge to set arbitrary dates or a single date for a complex project. Clearly identifying items that are urgent or have a firm due date gives you the opportunity to negotiate cost for those items that don't. With this knowledge, vendors can partner with customers to meet urgent or firms dates with minimal financial impact on the project. When it's not possible to do so, vendors can provide the customer with options so they can make the best business decision (e.g., it can be done in 10 days for $20,000, or it can be done in 45 days for $10,000).

When both customer and vendor openly discuss the true cost of project deadlines, everyone can make informed decisions about whether quicker delivery justifies the additional cost.

Prevent Conflict (It's Easier than Resolving It!)

With any complex project, it's possible for the customer and the vendor to have a different understanding of the requirements – even when these things are outlined in an RFP or statement of work. Good partners are always on the lookout for points of possible confusion. Both the customer and vendor need to ask a lot of questions, make lists and draw pictures. By proactively addressing ambiguity or uncertainty up front, rather than hoping it will resolve itself, major discrepancies between the required functionality and the proposed solution are identified before the project begins.

When major discrepancies are identified up front, sometimes it is better to call off the "engagement" rather than end up in a bad "marriage" in which the combination of requirements, expectations and budget for a specific project make for a bad customer/vendor fit. It may seem counterintuitive, but the more willing a vendor is to say "no" from time to time, they more likely they are to be the type of partner you can build a really good long-term partnership with.

When Things Go Wrong

Despite everyone's best efforts, however, confusion can happen and changes may be necessary. For instance, as work progresses, the customer realizes they have additional needs, or the vendor may realize they understood something differently than the customer intended. What is critical in these situations is the response. In a good partnership, both sides can work together to resolve these issues, based on the assumption that everyone is doing their best and acting in good faith.

Vendors need to be willing to analyze the project, looking for ways to minimize the cost associated with additional requests. Customers should recognize that additional work results in more expense, which cannot always be borne entirely by the vendor. Ideally, both sides can work together to minimize cost (e.g., trimming out other features or functions to off-set the additional work).

Conclusion

Few B/OSS projects go exactly as planned, especially large or complex ones. Yet if both partners "give a little, take a little" while resolving issues, a successful vendor/customer "marriage" can be achieved. The keys are really pretty simple: Commit to a win-win relationship from the very start, be willing to compromise, and give each other the benefit of the doubt as you work together to create your own OSS magic!

David West is executive vice president of Equinox Information Systems, responsible for developing and implementing the company’s long-term strategic plan, including product design and marketing. West works directly with the company’s hundreds of customer sites across the United States, Europe, and Asia.