The Golden Rules of Vendor Selection
These vendor selection guidelines help us identify a potential match or eliminate a gross mismatch.
Rule 1: Size Matters.
The vendor size should be matched to the task at hand. You wouldn’t build a rocket launcher to kill a woodpecker; likewise, you don’t need a top-tier vendor to build a five-member QA team.
To pick a partner of the right size, start with vendors for whom the volume of your business represents between 1 and 20 percent of their revenue stream. Being above 1 percent will help you get an appropriate “attention share,” since the attention you receive from vendors is typically directly proportional to the revenue you bring them. On the other hand, you don’t want your business to represent ...
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