Digitalization leads to volatile product specifications in purchasing. Code quality and architecture must remain future-proof. New acceptance criteria and quality metrics are needed.
The omnipresent trend toward digitalization stems from the desire for intelligent automation of processes and services. Intelligence in this sense is the ability to independently adapt these processes and services through the use of suitable technologies. The backbone of this capability is always software that processes this information and process data (such as in IoT applications) and derives and outputs corresponding change impulses using suitable algorithms.
The trend toward large-scale digitalization means that many companies have to deal intensively with the topic of software development. Even if one relies on building up one's own software engineering competence, the dynamics of digitalization are so high that often additional specialized suppliers must be used for software development. Due to the special characteristics of software, with regard to the specification of its properties as well as with regard to acceptance, this is a particular challenge for a procurement department and the stakeholders involved.
When procuring software developed according to your own specifications, the following aspects must be taken into account:
This in turn gives rise to further questions:
Figure 1 shows an example of how internal stakeholders (e.g. development, procurement, and quality management) can work together with an external software analysis specialist in the procurement process and throughout the entire supplier life cycle when awarding contracts for software services.
We strongly recommend that procurement departments equip themselves with software analysis expertise, at least in companies with a clear digitalization roadmap. It cannot be ruled out that a promising digitalization strategy will fail solely due to the procurement of important software developments from an unsuitable service provider.
In our next blog (Which Metrics Best Describe the Quality of Software Service Providers?), we will highlight some of the technological and organizational criteria that provide greater assurance when procuring software developed to specification, so that you actually get from your supplier what you intended when you placed the order.
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