Navigating Vendor Selection for Core Banking Modernization: A Look Beyond the Surface to Prevent Bait-and-Switch Tactics.
You’re a bank executive reviewing implementation partners for an upcoming core banking modernization. Various vendors present profiles of rockstar resources who will lead your project. The impressive resumes build confidence in their teams.
But once contracts are signed, a bait-and-switch often happens. Those all-star resources suddenly become unavailable. They get swapped with bright but inexperienced junior resources. This risks derailing your complex project.
Unfortunately, this vendor bait-and-switch tactic occurs frequently. Here’s why it happens and how banks can prevent it.
Why Vendors Dangle Their A-Teams
During core banking selection processes, vendors dangle their best resources to win deals. Their A-teams have the shining resumes and specialized expertise that impress prospect banks.
But this presenting the absolute best resources creates a discrepancy between sales promises and delivery realities. After signing, vendors assign their top talent to the next sales opportunity.
Newly inked projects receive competent but often junior resources. It’s classic bait-and-switch tactics.
The Risks of Under-Experienced Teams
Swapping out senior veterans for fresh graduates seems innocuous. But it introduces major risks for complex initiatives like core modernizations:
- Loss of project knowledge – Experienced staff transfer insights from past projects. Newbies lack this context.
- Lack of issue anticipation – Veterans can foresee risks and steer around them. Inexperienced folks learn the hard way.
- Weak leadership – Young resources often don’t have the gravitas and soft skills to drive projects firmly.
- Business solutions deficits – Junior resources take more technical versus business solution approaches.
Together these deficiencies derail critical initiatives like core upgrades. Outcomes suffer from the talent bait-and-switch.
Preventing Resource Bait-and-Switch Problems
Banks can take steps to prevent or minimize vendors’ resource bait-and-switch tactics:
- Require staffing continuity commitments in contracts, complete with penalties for changes.
- Interview proposed resources thoroughly to vet capabilities beyond resumes.
- Demand transparency from vendors on staffing plans, continuity and contingencies.
- Secure contractual authority to approve or reject resource changes.
- Only sign contracts once you’ve met the actual project team, not profiles.
- Object immediately if staff downgrades occur, demanding equivalently qualified replacements.
With proactive measures, banks can ensure vendors deliver the capable resources promised during sales – not inexperienced figureheads. That consistency and expertise are vital for core project success. Don’t let vendors off the hook.
Found this article interesting? Check out these three related reads for more.
- Series (2/10): Why core banking transformations often fail Insufficient resources, planning and preparation
- Choosing the right API vendor for banking innovation
- Evaluating core banking vendors beyond demos
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