Topic Teasers Vol. 137: Lowering Software Purchasing Risk

Have a question you would like to submit as a potential Topic Teaser? Send a message to Barbee Davis today!

SHARE
Request to reuse this
Add to my favorites
Topics: Cost Management, Procurement Management, Risk Management

Due to major cutbacks at my organization, I have been asked to work on getting new software that we need to update. In the past, we had a procurement department to do this. Since they were all let go, finances are at a low level for us. How can I quickly get myself up to speed so that I lower the company risk when we sign a new software contract​?

A. To lower risk when purchasing software company-wide—whether you are information technology (IT), procurement, or a departmental or business unit leader—take a moment to look at risk factors that are standard in all projects, then see how they apply in your situation. Learn a few common pricing strategies and how you can protect your organization before signing any contracts.

B. Fortunately, large software companies will have salespeople to guide you through the process and help you find the best product at the most reasonable price. Due to your inexperience, you should rely on their guidance about which pricing structure and which contract information is to your best advantage.

C. Software is a big moneymaker for some sellers, so they only offer it on a yearly plan. The best value for your company is to project how many licenses you will need over the next two to five years and …

Please log in or sign up below to read the rest of the article.