Complete effortless HR solutions
What is a ‘best of breed vendor solution’ and ‘what is a single vendor solution’?
Traditionally software was an expensive investment that only large corporations could really make.
Back in the day when software was shipped out in a pile of ‘floppy-disks’, everything about software was expensive, which is why leading single vendor solutions became the dominate entities in the enterprise vendor space.
Then came the internet, software as a services, and the smaller, more innovative software vendors, like ActionHRM, with a best of breed HR solution, making software more accessible via cost effective opt-in modelling, as well as a focused implementation approach, leading to less costly admin costs from day 1.
It has been interesting to observe how single vendors still believe that a ‘single big multifunctional software offering’ is still relevant to the majority of the mid-market given the high costs in direct comparison to best of breed vendors.
The truth is mid-market companies should also factor-in substantial costs associated with breaking out of a single vendor contract at a future point in time, when components of the offering simply don’t, or can’t meet functional requirements without a significant reimplementation project requiring a greater overall budget.
All of these simple realities are proving to be a challenge for all but Tier1 global entities that can afford the significant team of administrators, developers, trainers, and managers to keep the software functional – which in many cases makes ongoing incremental update releases deployment to production almost impossible, and in some cases the base project is never delivered on the original set of business objectives given the significant risk associated with broad functional coverage / cross department single vendor implementation projects.
Put simply, with a best of breed vendor you will get more value for your money, retain flexibility of choice to easily swap and change solutions to meet your evolving functional requirements in the future, and most importantly you will achieve deeper functional efficiency and automation as a direct output of a more focused software vendor, as a specialist in their given space, affording you the real option to deploy the latest innovation quickly and cost effectively.
Sure, tier1 single vendor solutions providers will continue to purchase leading best of breed vendor solutions, however as we have all witnessed many times over the past 30 years, ‘seldom will a tier 1 takeover of a leading best of breed vendor resulting in the continuation of rapid innovation’ – they are simply too large, with too many complex considerations, burdened by an internal roadmap often 5-10+ years into the future.
There is an emerging sense being expressed amongst leading mid-market corporate companies, that taking the single vendor approach represents a significant risk for most – because when things don’t go to plan, at any point in time, it’s almost impossible to pull the pin and go back to market to try again.
Think about it… your main aim is to mitigate risk, so you go down the path of a single vendor contract, only to realise that the vendor is supporting dozens of disparate application solutions, non-of-which work in the same way, many-of-which are supported by different groups of people within the same single vendor, with integration a nightmare to enhance. This occurs more frequently than you might imagine, as single vendors takeover smaller quality best of breed vendors, taking the product in-house, as they desperately attempt to onboard, reshape, and redeploy in a more conservative package mirroring the parent tier1 offering.
When something goes wrong (and there are many more moving parts, leading to arguably more risk – you as the client of a single vendor solution will be solely responsible to manage the single vendor contract. What happens when you can’t get in touch with the right group of people, or you realise you only have a single contact with no real escalation pathway to meaningful resolution? Again, this situation does often occur, compounded by complexities presented in the idea of a single contract vs the realities of the production deployment, training, maintenance and support of comprehensive solutions.
Keeping things simple in the mid-market is the key.
Key considerations include: