Your HCM Vendor Wants to Outsource Implementation? Not So Fast.

As you review proposals during your HCM evaluation and selection process, the responses from the proposing vendors may vary in terms of who actually performs the implementation of each respective HCM solution, i.e., the vendor themselves or a 3rd party implementation partner. Should that matter to you?

Implementations: In House vs. Outsourced

It has become increasingly more common for a number of the relatively larger enterprise-level HCM vendors to utilize a certified and trusted implementation partner for that crucial phase of the project. Some vendors will clearly indicate and emphasize with pride that they do not “farm out” the implementation of their software solutions to other entities. Other vendors may advocate strongly that their certified installation partner is the best, most efficient option for the customer, allowing them to utilize skilled implementation resources while freeing the vendor to focus its resources on core competencies such as product development, marketing, sales, and support.

Vendors who deliver their HR solutions to the relatively smaller and mid-range segments of the HCM market tend to perform the implementations from within their own ranks, although not exclusively. As the size of the customers and the complexity of the project increases, certain vendors may recommend enlisting the services of an implementation partner to work with the customer directly or as a complement to their in-house implementation team.

Should I Use a Third-Party Implementation Team?

You need to carefully weigh the overall advantages, disadvantages, risks and considerations when selecting a solution vendor. This calculation should include an evaluation of the resources a vendor can deliver on the project management and implementation of the new solution, assuming that integrated solution otherwise meets your HR business, functional, and technical requirements.

Here are 10 considerations and questions that need to be addressed as you evaluate vendors who may either recommend or exclusively outsource the implementation of their solution to a 3rd party organization:

  1. What is their partner’s recent experience with implementing other customers of a similar size, industry and complexity of requirements to that of your organization?
  2. How do the implementation costs compare between what the vendor would charge for performing the implementation versus the fees for using their partner?
  3. Are the typically higher costs of using a third-party installation partner justified by a more efficient and professional implementation?
  4. What are the risks of exposing and allowing access to your company and employee data to an additional party within the implementation (such as exposing confidential data while implementing new payroll processing software)?
  5. Does the vendor have project resources to oversee their assigned partner on all aspects of the implementation, and to what extent does the vendor bear any responsibility?
  6. Is their partner, and all of their assigned project team members, fully trained and certified on all components of the vendor’s current solution that you’re considering?
  7. Does the implementation partner follow a vendor-approved project methodology?
  8. Does their implementation partner also deliver the required training on the vendor’s solution, or is that provided through other resources at the vendor level or through another third party?
  9. How is the project transition handled from the vendor’s sales team to their partner’s implementation team -- and from their partner’s implementation team to the vendor’s support team?
  10. Is there a clear definition outlined within both the vendor’s and partner’s proposals to ensure that all of your requirements will be communicated and fulfilled throughout the entire project?

While many successful implementations have been performed by trusted partner companies of HCM solution vendors, you need to ask – is this an arrangement that’s right for you?

StarGarden’s professional implementation team works with you to seamlessly implement and integrate your new HR solutions while preserving your confidentiality, privacy, and operations. Contact us today to find out how you can try out StarGarden 5.0 HCM software in your organization.

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