The Benefits Of Using Third Party Services For RFP Services When Considering New Enterprise Software

Posted by Tom Burt on Wed, Jun 13, 2018 @ 10:56am

The implementation of new enterprise software is not always an easy process. Consulting a third-party service provider for an RFP ensures that the process runs efficiently and smoothly. This article highlights the benefits of using third-party services when moving to a new enterprise software system.

Third-party software support

Third-party service providers often facilitate new enterprise software support at a lower cost than what other vendors (e.g., SAP, Microsoft, and Oracle) charge per annum. Their rates are very attractive given that software update together with license support cost about 18%-22% of the total licensing fee.

A third-party support structure can be attained in clearly-defined situations, and it has a lot of benefits to offer. This is especially true for smaller enterprises that are growing into mid-size businesses. For the bigger companies, enterprise software may not be a new tool, but they still need managed services to implement it.

How is it possible?

The reason third-party support works is that most of the biggest software products have undergone industrialization. This is partly as a result of the radical development of the software industry as well as the operation models of the vendors. For the first few years of a new software release, most of the issues like bugs are noted and tackled by the vendors themselves.

Afterward, the base code problems reduce tremendously as the software reaches stability. Suppose your company runs a 10-year-old or 8-year-old software version; it is unlikely to experience hiccups which need to be solved by a vendor. In such a case, third-party support comes in handy. Most of the support problems are related to custom codes and custom configurations which aren’t covered by the standard support contract of the vendors. So, it makes sense to consult a Managed Service Provider.

1. Saving on the initial annual fees

You could save up to 50% of the annual charges if you chose an MSP over vendor support. The amount of fee you pay in the long run depends on your business needs. When your company is experiencing growth or upgrading its hardware, it is important for it to stay in compliance with the licensing and regulatory conditions. The same is true when updating software for whatever reason.

2. Unmatched customer support

The support centers of Managed Service Providers are full of people with many years of experience. Furthermore, they come from vendor companies, system integrators, and consultancies which work hand in hand with software. As such, they understand fully the intricacies of RFP services and software customization. You can count on them for their hands-on experience in implementing, upgrading, customizing, and upgrading these products.

In other words, there is nothing they haven’t done that today businesses are trying to do. Not only do they serve as technical support; they also act as problem-solving ninjas.  

3. Saving time in particular circumstances

There are special circumstances that justify switching from vendor support to third parties:

  • If your software deployment has been set to run for several years without the need of upgrades, you can consult third-party service providers to solve minor issues
  • If the upgrades are not so important to you, (perhaps you have a customized software version which is a bit outdated) you could get a great deal from an MSP
  • Augmenting vendor support with a third-party service provider: this could save your company both time and money depending on the circumstance. For instance, partnering with Oracle offers long-term benefits for hosting, outsources data implementation, emergency staff augmentation, and upgrades

4. Value-added benefits

Initially, businesses were more concerned about cost saving but in the process, they receive other benefits such as greater value for accessing advanced expertise,  hyper-responsive services, full support for customized code, and so on. Since third-party products are a bit complicated, the solutions aren’t actually a bug that should be fixed but a blunder in customizations and configuration. So, the mistake can be solved without consulting a vendor. If a solution is required, a patch should be applied. Most patches are built in the initial year and when you consult a third-party support vendor, the patches you have bought are downloaded and given to you.

Managed Service Providers can even create new patches for you as well as updates as per your needs because this is something they have done over years. Even though some third-party companies have proved their models with many clients, some organizations are still apprehensive of third-party services. They fear the services because the concepts are not widely known. However, organizations that embrace third-parties often seek more opportunities to explore third-party support in other areas.

Conclusion

Truth be told, implementing a new enterprise software is difficult and time-consuming. A company should take time to prepare for it properly so as to increase the success rate. If you have any problems or burning questions regarding RFP services and new enterprise software, feel free to consult third-party providers because they are always ready to help.

Software maintenance is an indispensable expense in today’s business world. While third-party service providers cannot completely replace software vendors due to legal limitations, there are situations whereby discontinuing vendor’s SULS in favor of an MSP makes a lot of sense. It reduces the maintenance costs of a company’s software substantially. However, you should negotiate an agreement which stipulates clearly the charges, responsibilities, primary liaisons, priorities, and predictable situations. Notably, the right time to reduce software vendor costs is during the revision of a license contract. Consider selecting the maximum software packages your organization requires and negotiate the total costs. The expense must not go beyond the value of up to date and fully compliant software.

Managed service providers come in when you get stuck on software upgrades. Sometimes, you don’t actually need an upgrade but rather a different level of support. Moreover, some providers support custom codes and offer topnotch services than vendors at reduced costs. Lastly, they archive entitled software for which the license has been paid for. Clients are normally on 5 to 10-year-old releases or 2-3 years back. Either way, it is possible to upgrade a software release which is currently running under third-party support at any time and even in the future.

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