Aviation Test Software Development Services Market Procurement Intelligence Report

A changing ecosystem within the Consultancy market also affects the procurement process, cost dynamics and supplier attractiveness for the buyers of Aviation Test Software Development Services. The market is rapidly showing signs of a great divide - at one extreme is a low-cost market with almost commoditized services and at the other end is the market for high cost specialized services. Aviation Test Software Development Services vendors are adopting starkly different business models and cost structures in an effort to address both the markets.

Most clients now prefer splitting a single project among different vendors as it enables them to allocate parts of a project to specialized professional firms and keep the supplier base wide enough. Some clients adopt this strategy to understand the capability and performance of individual supplier and then pick one or a smaller set of suppliers for future contract opportunities.

Certain non-compliance scandals in the broader professional services industry has pushed both clients and suppliers to put in proper processes and protocols that reduce non-compliance, protect data and information and demonstrate ethical business practices.

It has become imperative for category managers to remain as agile as possible in terms of their procurement practices. However, it is not always easy to quickly spot and implement alternative practices in a category like Aviation Test Software Development Services. To help quick decision making, this report advises on several procurement best practices that have worked well for category managers.

For example, Category managers must ensure that they have clearly identified and listed down potential negotiation levers to maximize the value of their category spend before entering into contract-related discussions with service providers. Common negotiation levers to maximize value include deadlines, terms related to payments, (including fees, expenses, and payment timelines) and assistance required from the buyer's organization.

Adequate RFP response time should be built in for prospective suppliers to enable them understand the scope and performance requirements.

Buyers must request for breakup costs for each service to gain better visibility into service providers pricing.

Aviation Test Software Development Services procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Aviation Test Software Development Services procurement. Some examples include: