Change is inevitable and in the information technology sector it takes place so fast that today’s innovation is very soon tomorrow’s antique!
Once an organization starts using certain software it has to be careful that it does not become outdated before it reaches its potential. For this reason it is important that the question of modification of the original software be addressed right at the onset.
Custom modifications can be created for both custom software and off- the- shelf packages and provisions need to be built in to the initial agreement between the developer and the buyer. It is highly recommended that updates, modifications and fixes are explored thoroughly before the buyer actually invests in the software.
Some of questions that need to be raised at the time of the initial contract are:
- Have definite plans been made to incorporate updates and modifications to the original software.
Both the developer and the buyer need to anticipate that the software will require modification in the future. Then, the process and pricing for this can be spelt out right at the start. If this is not done, the buyer may face various limitations when the software gets outdated.
- Does the software developer plan to market this software or other similar software to other buyers?
If there is nothing in the agreement which prevents the developer from marketing the product to other potential users, the buyer may find that the special customised features of the software are very soon not exclusive any more.
- How will the pricing be structured and will it take into consideration future modifications?
In the creation of custom software it is usually implied that future developments too will be funded entirely by the buyer. Thus pricing parameters need to feature in the contract.
Most software developers charge exorbitantly for adjustments to the software in the future. Such adjustments include increasing the number of users or locations or changing the software to suit the changing needs of the organisation. However if the buyer is able to anticipate such changes, the initial agreement can take them into consideration and future pricing can be mutually agreed upon. It is significant that the buyer’s negotiating power is the most at this stage. Pricing negotiations at a later date force the buyer to accept the developer’s rates or else be saddled with outdated technology.
- How will custom modifications be made to an earlier version of the software?
It is not necessary that a new version of the software will support all modifications. Sometimes it may so happen that the modifications do not run at all and may need to be redeveloped.
A problem may now arise if the initial agreement had laid out that the developer’s support obligation was conditional on the buyer using the latest version of the software.