Vendor sales blighted by lack of trust

Only two percent of IT purchasers at Fortune 1000 companies are prepared to trust the financial data supplied by vendors to support purchasing decisions.

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Vendor sales blighted by lack of trust

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The survey, commissioned by Ernst & Young's Decision Analytics group, reveals that nearly 80% of IT purchasers view financial justification measurements, such as return on investment, as an important element in securing internal funding for purchasing decisions and many rely on IT vendors for such an analysis.

The burden of providing a reliable financial analysis rests squarely on the shoulders of IT vendors, says Ernst & Young, with 60% of those surveyed expecting the solution provider to bear 100 percent of the cost and 96% indicating that the vendor should pay at least half. In addition, 46% feel that they would trust financial data more if an independent third party conducted the analysis.

Adding to the general distrust buyers have of metrics supplied by IT vendors, 96% complain of being inundated with marketing brochures and sales presentations which have little value in the purchasing decision process. A more customised approach is expected by 45% of respondents, citing case studies specific to their organisations as an example.

"The survey results show that a customer's perception of quality and objectivity is directly linked to the types of communication that vendors use in the sales process," says Chris Mazzei, a senior manager in Ernst & Young's Decision Analytics group. "Leading IT vendors will be the ones that can provide a customised, verifiable value proposition to their technology solutions that can be supported by an independent third party."

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