In the case of tangible products, such as cars or clothing, relatively easy to determine their value. Production costs increased by margins of manufacturers and distributors allow to determine market prices. Therefore, the two cars with similar characteristics and similar equipment generally – not counting the situations in which the price significantly affects the prestige of the brand – are priced similarly.
In contrast, the knowledge-based services, including services development. First – the layman difficult to compare with each other parameters of the two, seemingly similar to each program. Secondly, the highest bid, which will in response to a query enterprise, maybe even a dozen or so times higher than the lowest.
– The price typically depends on the size of the company-contractor and on how extensive are its administrative structures – explains Maciej Blajer, CEO of IT company Enadis. – But the higher price may also mean that the application will be better quality, more secure, more convenient to use and pleasing to the eye, as well as accurately tested. All these factors strongly influence the cost of the project and can cause up to 10-fold differences in the valuation reported by contractors – emphasizes.
That’s why the price is not the best parameter on the basis of which companies should make the selection of the contractor.
Specialization does not always matter
A much better way would be to read the portfolio of each of the companies applying for the job. You can check what kind of projects prospective contractor had in the past to deal with, and on that basis try to determine whether cope with the implementation of the new program.
In this case, however, there are certain dilemmas – whether the company, which takes into account the client must have experience in exactly this type of application or system that the customer wants to order, and whether it is better that the company was closely specialized in the type of programs that can be better performer with a wide range of interests.
According to Maciej Blajera, in most cases, more important will be a wealth of experience acquired through the preparation of various types of software. It will increase the chance that the contractor is also able to cope with another challenge.
– The greater variety of projects, including a richer experience. If the company did not create exactly the type of application, from the technical side there are no obstacles to this has done – explains the president of Enadis. – Specialization will be important in one case: if the customer wishes to use the services of only once and does not intend to expand ordered the application or integrate it with other systems – adds.
It should be borne in mind that this is not a contractor, but the company-client is a specialist in its field. Therefore, the enterprise managers should not expect that the selected contractor will be software professional in every area of the business and precisely determine all the requirements which must be met app.
If the same client is not able to pinpoint their expectations on how the function should be ordered program, the company may benefit from the help of external consultants.
The young are cheap, but unsure
When choosing a contractor, managers may be tempted to execute a program or system entrusted to independent developers or new companies, which could often offer very attractive prices. While this will not be at high risk for a small application with little significance for the company, whereas the key projects better take into account the company with a stable position on the market.
– Software development is unfortunately complicated and risky activities – says Maciej Blajer. – Many small businesses founded by students quickly cease to exist, on the one hand, unable to meet the demands of customers, on the other hand, wage demands highly qualified specialists.
If the contractor shortly after the completion of the system design of business, it will mean no further assistance service and the difficulties in the case of software development. In practice, you may find that you will have the emergence of a new artist, and this may not be interested in developing their software prepared by another company. The consequence may be extra costs and time needed to develop an alternative system from scratch.
Companies with a stable position on the market, in general, have also developed standards for projects that provide a higher level of security. There is less risk in such a situation that, for example. Confidential business data could “put out” outside.
Instead of the principle of lowest price, in business usually best to be guided by the extensive portfolio and experience of the contractor. It should also take into account the opinions about the company and how long and how it operates successfully on the market.
Enadis
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