How to Evaluate Technology Vendors Properly

(set up delivery), and integration, how that will happen, and how easy or difficult the inherent tasks may
Support and services — such as training, implementation, and ongoing support pre- and post-purchase, as well as throughout the technology ownership
Vendor health — such as vendor stability, references, and culture alignment to your team’s organization, as well as product or vendor
Pricing, and commercial terms — such as one-time versus ongoing costs, contract terms, licensing terms, renewals,

specific requirements within each of those categories according to the specific needs and objectives of your organization. Once your final list is complete, prioritize each requirement as “high,” “medium” or “low.” Be sure to also assign weight to each requirement category according to its importance to your organization and objectives.

To ensure alignment on what matters most, review the prioritized requirements and their category weighting with all stakeholders before you begin vendor evaluations.

How to Assign Priorities to Requirements

Ask yourself:	If YES, set the priority as:
Is this requirement essential to my organization or objectives?	High
Is this requirement highly desirable, but not necessarily essential to my organization or objectives?	Medium
Is this requirement optional, and not a barrier to the success of my organization or objectives, if it is not met? financial viability, market responsiveness, and customer base, as well as their level of innovation (does their view align with yours)? If reviewers surface requirements you didn’t, consider incorporating them into your selection criteria.

Step No. 4: Finalize your shortlist of vendors and re-score them before making your final selection

As your team works through the evaluation and scoring process, you may find that you want to add, edit or delete requirements, or even add entirely new vendors or products to your list. That’s fine. Remember that the goal at this stage is to eventually end up with your team’s final shortlist of one or two strong vendor products that you will continue to test and evaluate more stringently through additional conversations and product demonstrations before making your final decision or purchase recommendation.

Only after you have compared all of your vendors and determined who can best meet your organization's needs are you ready to select a vendor and product from that shortlist and negotiate final terms. In short:

To save time and energy in evaluating technology vendors, take an organized, systematic approach to narrow your choice around key criteria.
Use established models and processes to help organize requirements and criteria and prioritize what’s most critical to your organization.
Score all vendors against all criteria and requirements or their comparisons won’t be equal.

Colin Reid, VP of Product Management, leads Gartner teams in scoping, building, shipping, and managing global SaaS applications, including BuySmart. Previously, as a Gartner analyst, he helped clients design, build, integrate, operate and optimize all aspects of marketing and content technology and their operations. Mr. Reid also has experience as a CMO, COO, and team leader at client marketing organizations, marketing agencies, and global technology providers.

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Recommended resources for Gartner clients*:

Demo Gartner BuySmart™ (login required)
How Markets and Vendors Are Evaluated in Gartner Magic Quadrants
IT Cost Optimization, Finance, and Value Primer for 2022
What 'No-Regret' Technology Buyers Do Differently

*Note that some documents may not be available to all Gartner clients.

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