Elements

1. Knowledge ad Expertise

• common reason for using third-party vendors - they can provide knowledge and expertise
• methodologies + technology transferred from vendors

2. Licensing and Pricing Models

3. Vendor Market Prosition

Market player

Comparison of organzation’s profile with each vendor’s customer community also be a factor in the assessment

dynamics of vendor’s market customer

4. Terms and Conditions

• such as licensing temrs, intellectual property rights and technology infrastructure

5. Vendor Experience, Reputation, and Stability

• experience = valuable info
• evaluated for conformance and compliance
• risks in case of financial difficulties

Usage Considerations

Strengths

• increase chances to develop a product and fair relationship with suitable and reliable vendor

Limitations

• conusming time and resources
• does not prevent risk of failure