HRMS Software: Trusted partners vs vendors

Trusted partners vs vendors

A successful business comprehends many areas of expertise which solely depends on building a great team.  Large to small or medium scale organizations appoints a leader for almost all the major functional areas. For some areas the employer hires external services. These external supplements for the teams are provided by vendors. 

Organizations tend to purchase applications from vendors. As that seems an easy approach. Software developers develop various applications and sell to various organizations. One such application is HR software. 

Let’s start the discussion with a simple question:

The difference between partners and vendors

Trusted Partner

A partner is a firm or a team dedicated to the success of their client so much so that the interest of the client is placed even before their requirement.


A vendor is a firm or a team that agrees to provide resources and services in exchange for the agreement of financial transactions.

The success factor

The success factor for the partner and the vendor is different. For instance, the Key performance Indicators, known as KPIs are shared with the partners. The reason behind this is that an increase in productivity will help in the success of both the organizations.  On the other hand , vendors have nothing to do with the performance in dictators of the organization. They are entitled to provide services in exchange for money and the ascending or descending performance curve does not reflect on the profitability of the vendors. To sum it up we can say that, partners motto is to set up a win-win platform to ensure benefit for both the client and the partner. Whereas the vendor’s motto is limited to providing services in accordance with the requirement of the organization. 

Money factor

The financial transitions stand different pages for the vendors and partners. Partners are entitled to a percentage of the profit. The client and the partner decide on the financial terms while framing a contract and do not amend it until the duration of the contract  is over. Partners are entitled to the profit and loss of the client. They bear the burden on their shoulder. 

These factors differentiate a partner from a vendor. Let’s discuss how the factor plays an imperative role for the IT sector. 

Organizations tend to opt for web based applications developed by vendors but some organizations opt to develop teams to design software that can be utilized by the organizations.  One of the majorly utilized applications is HRMS software in India. It is essential to understand the difference of an application developed by a vendor and a partner. 

For instance, an HRMS software in India developed by a vendor can be opted by the organization. An application purchased by a vendor comes with certain limitations. A vendor can provide a quick fix for the issues but a partner aims to work on providing a permanent solution to the problems. For instance, if an organization opts for an HR software from a vendor. The vendor provides services with installation. These services include installation, maintenance and support for glitch. 

Vendors professionally provide support for glitch but fail to involve themselves with employees and the organization. This creates  a gap in understanding the challenges faced by them. The reason behind this is vendors go by words or a checklist provided by the organization as requirements . 

On the other hand a partner who has developed the software has a sense of understanding as they have struggled alongside with the employees of the organization. A partner can develop an application that can solve the challenges with a better understanding.

These examples help to understand the role of a vendor and a partner in an organization. Hence the employer should make a calculated decision while opting for a vendor or a partner.