
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