For a IT project that requires vendor involvement, would you manage the Procurement process separately from the actual System Implementation?

Question

For in-house development projects, it is straight forward.

For a IT project that requires vendor involvement, would you : 1) manage the Procurement process separately from the actual System Implementation in 2 IPEC cycles? Or 2) would you combine the 2 processes and manage them as only 1 PM cycle?

Which would be a better option ? If #1, how can the 2 project cycles be managed effectively as a full project implementation from the organizatio persepective?

Any advice is appreciated. Thank you.

Answer 1

Combine procurement and implementation as a single project

You don't need a detailed analysis. A project is not a project unless it delivers an ROI. Procurement just incurs a cost. Only when it is implemented, you will start to earn the return. However, here are some additional points to justify why this is the right approach:

1. Some of the implementation steps have to be taken prior to closing the procurement project.
2. It is counter-productive to close the procurement project, declaring success and paying off the vendor, when the implementation will need heavy vendor involvement and commitment.
3. Coordination among the team members and resolving resource contention is easier, if you don't have two PMs who are trying to accomplish different things.
4. How do you resolve vendor problems discovered in the implementation phase? Unless you have a magic wand, scaling and performance problems will only be fully discovered in the implementation phase.