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How to Successfully Negotiate SaaS Contracts with HRMS Vendors


…How quickly SaaS vendors will respond to client questions or problems should be addressed, too. “If you place a call or log a ticket, when should you expect a call back?” said Jason Averbook, chief business innovation officer at Appirio, a consulting firm specializing in cloud technologies.

“We encourage organizations to establish service tiers for that, getting vendors to commit to answering routine questions in X amount of time, mission-critical questions in X amount of time and so on,” he said.

Account for add-on costs and define users. Averbook said you’ll also want to ask SaaS vendors if there are implementation costs associated with the frequent software updates they release, as well as extra costs for mobile applications or foreign language capabilities.

“Some vendors have additional charges for these things, and some don’t,” he said. “The software upgrades are great, but if they’re costing you a lot from a process or change management standpoint to implement them, it changes the equation.”

Tension can also arise over how SaaS subscription users are defined in contracts. Both sides naturally count full-time employees as users, but what about retirees, seasonal workers and others?…

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