HCM Customers: 3 Warning Signs When Adding On Products

The Covid-19 pandemic has caused quite a bit of upheaval for IT and HR groups (and many others) as they support the immediate needs of their user communities and employees.  To that end, the HCM suppliers have the tools that companies need to facilitate these requirements, but there are some warning signs that HCM customers should be wary of.

We have noticed three prevalent themes coming through the ‘pandemic buying’ that are worth noting and taking heed when you see them.

1. Your HCM provider is offering a free trial of software you don’t currently own to “assist you during these times.”

When you are offered anything for free, you are right to engage the adage that ‘nothing is really free’, and nowhere else is that more apparent with software licenses.  Unfortunately, often when you read the fine print, its only free for a short period of time.  When that time runs out, you may be on the hook to pay a premium price for an undetermined amount of time.

2. Supplier offer to review your usage of current HCM software and tools in order to “help you make better, more effective use of what you have.”

Handing your HCM supplier the keys to your kingdom in this scenario, is much like asking a fox to audit the chicken coop.  In almost no supplier led audit or optimization of your environment are you going to walk away with less committed revenue and licensure.  Suppliers are not in the business of helping their clients spend less, nor are their related salespeople incented to drive down customer spend.  If you don’t have the tools and skillset in-house to analyze and optimize your environment, then its imperative you hire outside talent to level the playing field.

3. When your provider offers assistance by advising you, that in order to be in compliance with today’s regulations, your company needs to purchase additional tools you don’t currently own or use.

Part of the reason you turn to an HCM solution is to ensure that you maintain compliance by simply using the tools as prescribed.  When new regulations are issued, it should not be incumbent on customers to bare the cost of these changes over and over again.  Suppliers typically find ‘opportunity in chaos and change’ and new regulations are no different.  Designing software that is able to absorb changes and updates without requiring new ‘modules’ is typically a choice.  In this case, a choice to drive incremental revenue with add-ons.

In summary, if you find that any of the three aforementioned situations pertain to your company, it may be time to call NET(net) and allow us to review your proposals and agreements.  We are advising our clients throughout this pandemic to cast a wary eye toward any changes in licensing – especially if it’s advertised as free.  There are good deals to be struck, and willing suppliers to strike them, but only if they are held accountable with independent market intelligence, analytics, and expertise to ensure a fair and equitable exchange.

About NET(net)

Founded in 2002, NET(net) is the world’s leading IT Investment Optimization firm, helping clients find, get and keep more economic and strategic value. With over 2,500 clients around the world in nearly all industries and geographies, and with the experience of over 25,000 field engagements with over 250 technology suppliers in XaaS, Cloud, Hardware, Software, Services, Healthcare, Outsourcing, Infrastructure, Telecommunications, and other areas of IT spend, resulting in incremental client captured value in excess of $250 billion since 2002. NET(net) has the expertise you need, the experience you want, and the performance you demand. Contact us today at info@netnetweb.com, visit us online at www.netnetweb.com, or call us at +1-866-2-NET-net to see if we can help you capture more value in your IT investments, agreements, and relationships.

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