SELECTION OF A SERVICE PARTNER – A TOUGH ASSIGNMENT
Among the factors identified by companies as crucial for the selection of an SAP service partner, experience and the number of clients served usually come first. However, when considering long-term and wide-ranging cooperation, it’s a good idea to carefully consider a number of additional aspects related to the supplier and his offer: the organization of the team, the form of cooperation, and the scope of additional services provided. The degree to which these requirements are met or adapted to the current and potential needs of the company will determine the level of satisfaction provided by cooperation with the partner. Based on HICRON’s experience in the area of SAP services, we would like to present a few tips worth considering when selecting a service partner:
Proper organization - the key to efficient cooperation
An independently structured service team is the basis of efficient cooperation. That is why it is worth asking a potential business partner a number of questions: Does the company have a team of consultants dedicated solely to rendering support services? Who is accountable for quality verification? How does the company deal with the issue of a lack of availability of consultants? If the company has a Resource Manager who guarantees the availability of resources, and is responsible for the organization of the service team and the assignment of tasks, the client can be certain that the task will be completed on time and properly. One factor that demonstrates the partner’s reliability is the assignment of a single person as an account manager. The account manager assists the client throughout the process, from reporting a problem to its solution, and at the same time makes sure tasks are carried out in a timely manner. “It is not enough for the account manager to know the system. Since the person delegated to providing support services often helps clients to articulate their needs, an account manager must be able to link a business problem to a specific system functionality. Therefore, apart from a thorough knowledge of the system, what is also essential is a familiarity with business processes and the ability to speak the language of business - the client’s language”, says Michał Guzek, Business Solution Architect at HICRON.
It’s worth checking whether the potential service partner has a dedicated portal for exchanging information between the company and the partner for such things as placing service tickets, suggesting and approving solutions, contact persons, and obtaining lead times. A properly structured application allows you to have full control over servicing costs, and will provide a knowledge base on solutions for problems that might occur in the system. Moreover, it will significantly facilitate the verification of the speed and the quality of services.
Don’t be afraid to talk to many providers
Even when the company is satisfied with the current service provider, you should remain open to offers from other providers. Firstly, it’s the easiest way to verify the current market rates. Secondly, this will give you a fresher outlook on the SAP solutions applied by the company, which may translate into ideas on how to improve work in the system. Thirdly, launching cooperation with another partner will most certainly introduce an element of competitiveness and consequently stimulate both partners to make their offers even more attractive. “Concluding a service agreement should not throw you off guard! I have encountered situations when a company, satisfied with its cooperation with a regular partner, paid service rates from a few years earlier. The IT market is changing: competitiveness and quality are growing, but prices are falling. That is why it’s worth placing an inquiry from time to time with a new potential partner. Even if only to have an argument for renegotiating the terms of the agreement” recommends Robert Stiller, Sales Director at HICRON.
Companies that do not want to sign a permanent agreement, or prefer to have the freedom to choose partners for executing ongoing tasks are recommended to conclude a framework agreement with several service providers. In this way, the company receives a guarantee on rates, quality and the terms for executing service tickets. When a service ticket is placed, the company sends an inquiry to a number of partners and selects the most favorable offer. Although this is a beneficial option in terms of costs, the amount of time required from the identification of a service need to solution of the problem will be considerably longer than if the company used the services of a dedicated service partner. This is mainly due to the time the service provider needs to analyze the problem and prepare a quotation and, following this, the time required to compare the offers presented. Framework agreements concluded with several partners are recommended mainly for companies that make only occasional use of support services. The optimum solution for companies with greater ongoing service needs is a prepaid agreement concluded with one partner.
When is the right time to change a service partner?
We usually decide to change a service partner in one of two cases: when the quality ceases to satisfy our requirements, or when we receive a more favorable price offer. While in the first case, the decision to change the partner is simply desired, in the second case – it doesn’t have to be. Before the company decides to replace the existing partner with another one offering more favorable rates, it should check whether a lower price does not imply worse quality. The selection of a service partner only on the basis of low rates may be related to the need to pay a much higher price than the most expensive offer presented. “We are not buying the price, but the service we receive for the price. That is why we recommend taking a closer look at the references and assessing whether the quality of the service is satisfactory. But do not forget that the company’s references are built on the experience of its consultants. So instead of assessing the length of the reference list, it’s more worthwhile to examine the CVs of the individuals dedicated to the service”, suggests Michał Guzek.
When verifying the competencies of a service partner, check the scope of the services it offers. In the case of an SAP application service, module competencies are crucial, yet technological experience, especially in BASIS and ABAP, is also important. “In observing our current and potential clients, we have noticed that companies require comprehensive support. During the execution of support services, needs are often identified that require in-depth technological know-how: integration with external applications, development of interfaces, implementation of non-standard solutions. In such cases, a lack of broad competencies in the technological sphere can result in an inability to solve a problem, and this disqualifies an SAP provider as a service partner”, Robert Stiller explained as he shared his observations.
Another element affecting the price of support services is the site where the services are rendered. Working from the provider’s office or operating remotely as a standard feature allows support costs to be held down. Providing adequate safeguards, such as secure VPN connections, ensures that required safety standards are maintained. When verifying the competencies of a potential service partner, make sure you know from what location he provides his services and what level of security he guarantees.
Application support in companies with corporate services
SAP application support services are required by every company using SAP systems. However, companies where the system has been implemented on a corporate level are often unable to make use of external service providers, and have to rely solely on the support of the corporate SAP Competence Centre. The Competence Centre may, however, have little knowledge about local tax laws or regulations, which is of great significance for the proper operation of financial and accounting modules, in particular . A possible solution in such a situation is the indirect use of the services of a local service partner through the in-house Competence Centre. In this type of arrangement, the local service partner takes responsibility for the execution of service tickets in a given area, and reports to the corporation’s Competence Centre. Cooperation between the company and the service partner can be as follows: the company reports a problem to the Competence Centre, which then orders the local partner to solve the problem, and oversees the operation to ensure that the solution meets required levels in terms of quality, lead time, and compliance with corporate standards.
