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Ten Steps in Selecting an ASP Time and Attendance Vendor by Bill Korstad As seen on HR.com Issue 1: Make sure your vendor's application is written specifically as an ASP application. Most applications are built around the client/server model and don't work well over the Web. Although you can use Citrix to access any application remotely, it is expensive and does not scale well. Make sure your vendor is offering a true thin client solution. Issue 2: Select a vendor whose application is 100 percent off-the-shelf. A 90 percent solution offered by semi-custom shops do not work well in the ASP world. There is no way to deal with the custom modifications required in these systems. If your vendor does not agree to build the modification into the application, or if you cannot afford to stick with the standard model, then chose another vendor or run the system in house. If you chose a system requiring customization, just hope there are no more Y2K surprises around the corner. Issue 3: Some ASPs build network facilities and data centers but merely broker the software applications. If you select one of these guys, make sure you know who is handling the implementation of your business rules and who is doing the customer support. Unless the ASP has been adequately trained or subcontracts that service to the time and attendance vendor, you could be in for serious startup problems. Issue 4: As companies seek out applications to solve their time and attendance problems, they wade through lists of great and not so great solutions. In the end, they often get stuck with the module offered by their HR, payroll, or ERP vendor because it "fits" with those other applications. The ASP model changes that selection process. As you move towards outsourcing all your applications, you have a better than ever opportunity to chose the time and attendance vendor that gives you the best solution. In the industry this is referred to as "Best of Breed." Issue 5: After making your "Best of Breed" choice, it is important that the time and attendance vendor provides the interconnectivity to the associated systems mentioned above. Demand it of your vendor. Accessing employee information from the HR or payroll system will save time by eliminating keying the information twice. Being able to export the pay file will also save you time. Without the interconnectivity, "Best of Breed" becomes only the winning horse in a low stakes race. Issue 6: Somewhere during the vendor's presentation, the devilish issue of pricing rears its ugly head. I have looked at a lot of pricing and it is all over the board. No one really knows what to charge in this new delivery model because no one really knows the costs. We all make our guesses, but no one really knows for sure. Challenge anyone who tells you differently. Here are some guidelines you can follow to understand the pricing and make a good decision. The price should cover the cost of the application, plus 20 percent for support and maintenance over the application's life cycle -- usually about three years -- plus a 10 percent cost-of-money factor, plus the data center and communications charges for hosting the application. In the end, you should be able to get a $10,000 time and attendance system for less than $600 per month. Anyone charging more than that may not know their costs, or may be charging excessively. Anyone charging less may be trying to buy the market and you need to be sure they have deep pockets in order to survive. Issue 7: Select a vendor with good business references. With its sudden popularity, many new ASPs, have exploded onto the scene. Make sure you chose one that is has experience delivering a full feature time and attendance system. Without the necessary experience, you could be in for a bumpy ride while the vendor matures their product. Issue 8: Check out the vendor's customer support structure. Many new ASPs rely on third party support. Early on, their support staff will have to consult with the developer on particularly thorny problems, delaying a solution to your problem. You can avoid this by insisting front line support comes directly from the developer. Issue 9: Select a vendor with a service-centric reputation. Application software developers traditionally focus on product delivery rather than service delivery. Developers have gotten by with that because much of a product's performance was in the hands of the end-user. But in the ASP world, responsibility for product performance has shifted to the ASP. An ASP vendor must provide service, so make sure your vendor thinks that way. Issue 10: Finally, outsourcing your time and attendance application presents a whole new way of doing business. Make sure you understand it, are ready for it, and are comfortable with it. Vendor selection is only part of the puzzle. Many claim it's the wave of the future, but only you can decide if the ASP model is right for your business. But if you choose that route step carefully, for the road is filled with many unseen potholes. Navigating that route is tricky, but well worth the journey. # # # (C) 2000 Unitime Systems, Inc. Unitime Systems, UNITIME, and the Unitime Systems logo are registered trademarks of Unitime Systems, Inc. All other product and company names mentioned are used for identification purposes only and may be trademarks of their respective owners. CONTACT: Unitime Systems, Inc. 303.473.0300 marketing@unitime.com |
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