Fear Not the Software
This column, the first of two parts, is excerpted and adapted from "Buyer's Guide to Audit, Anti-Fraud, and Assurance Software," by Richard Lanza, CFE, CPA, CMP, with Mort Goldman and Dean M. Brooks ©2007 Ekares Analytical Inc. The book is available in the ACFE Bookstore on www.ACFE.com.
In any vendor negotiation, a buyer wants to solve a software problem fairly and equitably. Obviously, you don't want to gouge a vendor not only because it's wrong but it limits the ability to work with that vendor in the long term. Optimally, you can establish a win-win relationship to ensure that both parties get a fair deal.
And if you focus only on extinguishing an immediate fire, you might pay for it in the future. For example, research has found 40 percent to 80 percent of a typical software project's budget is allocated to fixing defects created earlier in the project. The reason? Normally, the vendors over-promised to get the sales and then under-delivered, but organizations probably hastily negotiated faulty contracts.