Accounting Software Development Services Market Procurement Intelligence Report

Several macro changes in the dynamics of overall Consultancy as well as Accounting Software Development Services procurement trends are poised to change the business practices and procurement thumb rules. Traditionally, clients were charged on per diem basis for Accounting Software Development Services. However, rising pressure from clients to decrease pricing has resulted into an alternative pricing model of value-oriented billing where supplier's remuneration is linked to the performance or outcome of the project.

Many major Accounting Software Development Services suppliers are seeking inorganic growth to diversify their services and gain access to new products and new technologies at a lower cost. The strategy serves consultancy companies well as they can pitch for a larger scope of work and truly become strategic partners of their clients.

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.

Category managers need to take note of the potential of these developments and reassess the changes required in their procurement 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 Accounting 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, Buyers should invite bids from industry competitors to ensure that the offers they receive are competitive. Service providers may be willing to offer a multi-year engagement at a reduced fee, which can be beneficial for category buyers in the long-term.

Buyers should engage with service providers that can provide integrated services, including consulting, implementation, and support services.

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

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