How to Evaluate a Software Vendor: 12 Questions to Ask Before You Sign
Demos always look good. These twelve questions reveal how a software vendor will perform after the contract is signed.
Choosing a software vendor or development partner is a long-term relationship. The sales demo shows the best case; what matters is how the vendor behaves during implementation, when something breaks and when you need changes two years later. These twelve questions help you see beyond the demo.
About the product or solution
1. Can we test it with our own data? A trial or proof of concept with your real products, customers or processes shows gaps that a prepared demo hides.
2. What is standard, and what would be custom? Ask the vendor to mark each requirement as standard, configuration or custom development. Custom items cost more and may complicate upgrades.
3. How are updates delivered, and how often? Understand whether updates are automatic, whether they can break your customisations, and how long older versions are supported.
About delivery
4. Who exactly will work on our project? Meet the project manager and lead consultant or developer, not only the sales team. Ask about their experience with similar projects.
5. What does the implementation plan look like? A credible vendor can explain phases, milestones, your team's responsibilities and what happens if dates slip.
6. How do you handle changes in scope? Changes always happen. A clear change-request process protects both sides from surprises.
About support
7. What are your support hours and response times? Ask for a written service level: how fast critical issues are answered and resolved, and how to reach support outside office hours.
8. Can we talk to existing clients? References from companies of similar size and industry are valuable. Ask them what went wrong and how the vendor reacted.
About security and data
9. Where is our data stored, and who can access it? Know the hosting location, backup schedule, encryption and which vendor staff can access production data. For some industries and countries, data location matters for compliance.
10. Who owns the data and the custom code? Your data should always remain yours. For custom development, clarify whether you receive the source code and the right to modify it.
About cost and exit
11. What is the total cost over three to five years? Include licences, implementation, hosting, support, training, upgrades and expected change requests. Ask what increases when you add users, branches or data.
12. If we leave, how do we get our data out? Ask about export formats, costs and notice periods before you sign. A vendor confident in its service will answer clearly.
Red flags
- The vendor cannot explain what is standard versus custom.
- No references or unwilling to let you speak to clients.
- Vague support terms or no written service levels.
- Pressure to sign quickly with special discounts.
- No clear answer on data ownership or export.
- Every requirement is answered with "yes" without any detail on how.
Scoring vendors fairly
Create a simple scorecard before demos, with weights for what matters to you:
| Criteria | Weight | Vendor A | Vendor B |
|---|---|---|---|
| Fit to requirements | 30% | ||
| Implementation approach and team | 20% | ||
| Support and service levels | 15% | ||
| Security and data handling | 15% | ||
| Five-year cost | 15% | ||
| References | 5% |
Score each vendor after the same demo script, so comparisons are fair.
Frequently asked questions
Should we always choose the cheapest offer? No. Low offers often exclude training, data migration or support, which return later as extra costs. Compare complete scopes and five-year totals.
Is a local vendor better than an international one? Local vendors usually understand local tax rules, language and business practices, and can visit on site. International vendors may offer broader products. Many companies combine an international product with a strong local implementation partner.
What should be in the contract? At minimum: scope with clear deliverables, acceptance criteria for each phase, payment milestones linked to delivered work, support levels, data ownership, confidentiality, source code rights for custom work, and termination and exit terms. Having these written down protects both sides and prevents most disputes.
How long should vendor selection take? For a core system such as ERP, several weeks is normal: requirements, shortlist, demos with your script, references and negotiation. Rushing this step is one of the most expensive mistakes.
Key takeaways
- Test with your own data and separate standard features from custom work.
- Meet the delivery team, check references and get support terms in writing.
- Clarify data location, data ownership and exit options before signing.
- Use a weighted scorecard and compare five-year total cost.
KHR Digital Solutions is happy to answer all twelve questions for any project we propose, and to help clients evaluate other vendors objectively.
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