Hiring a Strategic Partner VS Hiring a Software Services Vendor

There’s a lot of blood, sweat and tears put into software development projects to bring them to fruition. Companies that don’t want to leave any stone unturned pore over every other way to execute tasks to get the best results.

This includes which language to use, what framework to decide on and even which methodology to adopt in a bid to have an end result that is no less than perfect.

One such crucial deciding factor is whether to hire a strategic partner or opt for a software services vendor for software development projects.

Partners and vendors both weigh equal on the scales and thus hiring one over the other might be a hassle for many who only want the best for their product.

Nevertheless, here’s the rundown of what the both entail and which one should you choose:

Software Services Vendor

As the name suggests, a software services vendor provides companies with a trove of developers and development teams that match their requirements. Vendors with a pre-vetted talent pool hire out their developers on a short-term basis to execute projects or certain phases of projects.

Software services vendors are similar to staffing agencies in the sense that they are in no way liable for any future business outcomes or growth of their client companies as their SLAs are predefined.

The development costs are decided before the beginning of the hiring stint along with the number and frequency of deliverables. The relationship between a vendor and a client is one based on one-time transactions rather than constant growth, partnership and development.

This makes hiring software services vendors a very stoic process with no strings attached.

Strategic Partner

A strategic partner completely contrasts what a software services vendor stands for. Strategic partners are agencies with a shared history, close connection and future tie-ups with the client company. They are just as much a part of growth and development as the client company, making them a key stakeholder in decision-making processes as their voice is one not to be unheard.

Strategic partners are there for the long haul, constantly turning up with inputs for their clients on what their next move should be or how to stay ahead of the curve.

They undertake extensive and voluntary research to ascertain the successful completion of goals and targets for their client companies.

Strategic Partner VS Software Services Vendor

Partner Growth: Built on risk and reward frameworks, with success and failure shared. A partner may support or oppose the design plan depending on what is best for the company rather than what is best for them personally. For the advantage of the company, they also participate in idea generation. Proactive approach; ready to solve issues before they arise.

Vendor Growth: Since SLAs are already defined, no growth elements are provided. Vendor involvement in design strategy or commercial results is likewise not permitted. Additionally, they don’t offer any suggestions that would help the organisation or benefit it. Reactive strategy; only address the problem as a reaction to the event.

Partner Model: Strategic, adaptable, and focused on mutual success because both businesses are involved.

Vendor Model: Transaction-based, with emphasis on providing goods or services.

Partner Cost: May alter as the connection and related services/products develop over time.

Vendor Cost: Fixed and agreed upon for a certain service.

Partner Strategy: Become an extension of your company, sharing your aims, culture, and values. Invest and expand your firm proactively for the future.

Vendor Strategy: The goal is to provide according to accepted standards; there is no specific strategy in place. Vendors are not allowed to participate in internal discussions or future decision-making.

Conclusion:

Both partners and vendors have a close working relationship with companies thus understanding which resonates more with your needs at a particular juncture in time are of utmost importance, The table above will help you make an informed decision on the same and bring clarity on these two very distinct yet similar aspects of agile software development.