As Vendor Scepticism Reaches New Heights Organizations Are Re-thinking How They Buy I.T.
Many institutions have been learning the hard way that vendor promises are not always what they seem.
Indeed, a number of high profile instances where organizations have switched vendor mid-project, has caused many IT Directors to rethink how they buy IT.
Although major IT projects often start with a blaze of publicity, their failure is generally a hushed affair.
Yet, it is a small industry and the word quickly gets around when major IT projects derail and relationships go sour.
The Risk Involved
There is a high risk of failure in selecting policy administration and related systems.
According to the ‘word on the street’ as many as 5 large life and pensions organisations have, despite major sunk investments, changed vendor over the past 18 month.
That means that if you are a large life and pensions organisation there is as much as a 20% chance of running into problems with the selection, or implementation of new policy administration and related systems.
For an industry that specialises in risk, that level of project failure is very disappointing.
Managing the Risk
There is an upside to this story however: – the way Life and Pensions companies buy IT is changing. In particular there is a strengthening of technology and vendor due diligence.
Vendor promises – buyers have heard them all before: – rapid implementation – total flexibility - seamless integration and so on – are now greeted with much scepticism. But, how to Validate Vendor Claims?
The words contained in vendor brochures, analyst reviews, or RFP responses don’t mean a lot.
Buyers are looking for the validation and proof that can ultimately only be gained by spending time with the vendor’s different customers (including those they would rather you don’t meet), and ideally by means of small scale pilot projects, or trial implementations.
The Simple Principle Applies: Try Before You Buy!
When it comes to policy administration solutions ‘seeing is believing!’
That is why, at Exaxe, we enable our customers and potential customers to pilot our systems in a wide variety of different ways.
That means seeing first-hand how our solutions can take one of their new products to market, automate key processes and integrate with existing systems. Our view is that buyers should ‘try before they buy’.
Norman Carroll, CEO, Exaxe