What Costs Are Involved In Purchasing New Software?

By now, you should have a clear shortlist of software, having gone through the selection process. This means you’re ready to review pricing and make sure you’re aware of all the various costs involved. Going over budget can lead to dire consequences, both internally and externally, so having a clear, defined budget means the process will be a smooth one.

Once-off Implementation and Set Up Costs
A key part of investing in new software is the implementation process. This includes any customisation that is needed, licence purchases (if relevant), process changes, prototyping functional areas of the business and the actual installing of the software, as well as system configuration. These are considered once-off costs, as they won’t regularly need to be paid.

Ongoing Subscription Costs
When it comes to subscription costs, there are two that are key. Firstly, subscription cost to access the software. This cost is usually charged per user, and is a relatively stable cost. It won’t change without forewarning, so you can budget accordingly.

The second, and more variable cost is usage costs. This is an umbrella term that captures costs like cost per timesheet, cost per payee, cost per invoice and more. These costs can change depending on volume processed, and thus need to be budgeted for accordingly.

Add-on Costs
Each software provider has their own pricing model. It’s important to ensure you have researched, asked and worked out what all your costs will be upfront, so bill shock doesn’t occur when it’s too late. This stage of the selection process is your chance to ensure all the elements you want are either include in the process, or listed as an additional cost.

Some of the things that have caught out people previously include:

• If the scope of the project changes – vendors may use this opportunity to include unreasonable costs.
• Features – features you consider basic having an additional cost, eg. a cost for every timesheet processed.
• Many software companies also now offer marketplaces – so you can add additional functionality or partners based on need.

If you’re looking to select a new recruitment software solution, then FastTrack360 is the logical choice. With a team of experts that understand the recruitment industry, as well as having over 25 years of experience, FastTrack360 is an end-to-end recruitment solution that allows you to recruit, interpret timesheets, pay and bill, all from the one platform. Get in touch via the form below or click here to setup a FastTrack demo, to see how it can help your business succeed.