Citation
(2005), "Sourcing software", International Journal of Productivity and Performance Management, Vol. 54 No. 1. https://doi.org/10.1108/ijppm.2005.07954aaf.003
Publisher
:Emerald Group Publishing Limited
Copyright © 2005, Emerald Group Publishing Limited
Sourcing software
The public sector is keen, for all sorts of reasons, to demonstrate that it is prudent in its use of resources; for that reason public sector organisations are continually seeking innovative ways to improve efficiency and effectiveness.
Once, efficient procurement meant single-tender procurement procedures, but this was pre-internet and pre-open competition. Since then we have seen increasing use of, for example, outsourcing and partnerships a quest to obtain ever better value for money.
SMS Ltd, a UK-based consultancy, is spearheading work in this field, working with both users and providers of IT services.
First, a process which is transparent, equitable and which fits with the client’s own processes is chosen to select one or more software suppliers. Then, SMS acts as independent, trusted third party to ensure that individual projects and contracts satisfy the criteria agreed between the parties involved.
A case study illustrates how the right information can help organisations make the right choices:
Rapid capability evaluation
Representatives of the client organisation held discussions with SMS to agree selection criteria. These included some “specialist” criteria relating to particular capabilities of particular interest – including communication and co-ordination; performance management; staffing; workforce; and planning.
Suppliers were then sent detailed questionnaires to complete prior to site visits by SMS. Responses were to be accompanied by documentary evidence and SMS used a tailor-made form that was designed to be both user friendly and self-explanatory. Some suppliers were restricted in the information they could share. SMS entered into non-disclosure agreements and in some cases reviewed documentation in electronic format on suppliers’ systems. In no case did security of intellectual property issues impede the thoroughness and reliability of the evaluation.
A ratings tool was used to collect data, including observations about process strengths and weaknesses. Ratings data were reported in a findings report for each candidate, then summarised to produce comparable evaluations in a pre-defined ranking table.
This information helped determine which candidates would be awarded preferred supplier status. The exercise enabled the client to make the optimal risk choices quickly, using a reliable method that could be repeated, either for a new candidate or for one reapplying after having made improvements to its processes.