The art of selecting an Internet technology provider

At Adviso, we are often asked to assist our clients in the delicate task of selecting a service provider. Our neutrality in terms of solutions and technology suppliers, our in-depth knowledge of our client’s Internet strategies and our vast experience are all reasons why our clients turn to us.

First things first: plan well

The first stage, which seems obvious, is the strategic Internet plan. This process involves the preparation of detailed specifications that are centered around the business strategy. We still often encounter calls for tender or contract offers for the Web site development projects of large-scale businesses that only consist of one or two pages with a simple list of desired criteria.

As a result, technological firms are in a position of power in that they can present an offer based on their own assumptions, without necessarily taking the client’s needs into consideration. This also means that the choice of firm will be based on the best sales presentation rather than the firm’s ability to offer the most appropriate solution for the project.

There are so many factors to consider

Choosing a Web technology provider is a long-term decision; for larger-scale or more complex projects in any case. It is not uncommon to see contracts of 5, 10 and even 15 years between platform providers and clients, the latter being well aware of the extent of the business relation they will need to build with the selected firm.

The local aspect and the fact that a supplier is nearby are certainly among the criteria taken into account. The firm’s ability to evolve with regard to the languages required for the project over the next 3 to 5 years also factors into the decision. The type of site involved will also affect the outcome. A site designed to generate business opportunities (leads), an e-commerce site or an Internet community; each will require tools, processes and expertise of a completely different nature that a single provide generally won’t be able to offer.

Cost is inevitably a significant factor. A common mistake however is to base the decision solely on initial costs. Maintenance costs, licensing, integration with other tools, ongoing optimization and performance measurement should also be considered. In this regard, we wrote an article covering the costs that are often overlooked when purchasing a CMS, tool or content manager.

The stages of a rigorous process

Once the need has been clearly defined in writing, it’s time to make use if existing data to compile a long list of potential providers based on other available data (e.g. Forrester, Internet Retailer), referrals from colleagues, Web searches and lists of providers by category. A little research in attempt to find a provider who has already developed a particular site may prove useful.

This long list must then be trimmed down so as to obtain a short list of carefully selected providers. A preliminary selection grid is a valuable tool at this stage. The grid must contain criteria that have been weighted according to the projects main stakes.

Once the short list has been compiled, a decision must then be made as to the type of information to be communicated to providers with whom a relationship is to be built. It is important that all providers are given access to the same level of information in order to maximize transparency and reduce the chances of one’s decision making being distorted by emotion or cronyism. At this stage, it may be appropriate to sign a confidentiality agreement with the providers on this list that may help ease any doubts with regard to providing the information necessary to the preparation of a pertinent proposal.

Finally, one should consider the proposals received and create a committee regrouping all of the projects stake holders, and perhaps even independent experts. The members of this committee should prepare a very precise, weighted grid. A meeting could then be scheduled with the finalists so as to further discuss their proposals and go into the details with at least two providers. Another stage may involve providing additional information to this very limited circle of providers. For example, providing sales figures would allow the providers to better grasp the financial stakes at hand, thus significantly reducing the risks associated with a project by aligning the objectives of both parties.

It is therefore evident that this is a crucial and relatively complex process that should not be taken lightly. In doing so, insufficient time and resources may be dedicated to the process. Choosing not to embark on such a process could result in financial losses and lost time due to poor decision-making.