Learning Objectives
By the end of this lesson you will be able to:
- Identify the key questions to ask when evaluating a supplier proposal for a data migration
- Explain the perverse incentives created by fixed-price contracts in data migration contexts
- Describe what a PDM-embedded supplier engagement looks like
Why Supplier Proposals Require Careful Evaluation
Data migration is routinely underestimated in systems integration proposals. The reasons are structural:
- Data migration is not the core product the supplier is selling - the target system is
- Suppliers are incentivised to win the contract, not to accurately scope the migration
- Data quality issues discovered during the project are commercially advantageous to a fixed-price supplier, as they can be attributed to the client and generate change requests
This is not primarily a question of supplier ethics - it is a structural feature of how IT contracts are written. A PDM-aware client understands these incentives and structures the engagement to counteract them.
The Fixed-Price Problem
In a fixed-price contract, the supplier’s profit increases when unforeseen work arises, because the client pays extra for it. In a data migration, unforeseen work almost always arises in the form of data quality issues.
The perverse incentive: a supplier on a fixed-price contract has no commercial reason to help the client resolve data quality issues quickly. Delays caused by data quality on the client side generate revenue.
PDM addresses this through the DMZ (covered later in the course), the formal definition of what data quality work sits on which side of the client-supplier boundary, and what commercial treatment applies to each category.
What to Look For in a Proposal
When evaluating a supplier proposal for a data migration, the key questions are:
On methodology:
- Does the supplier have a data migration methodology? If so, what is it?
- If it is not PDM, can PDM be embedded within it? This is the preferred option - most competent suppliers can accommodate it.
- How does the methodology handle the IT-Business interface for data quality decisions?
On business engagement:
- How does the proposal account for business engagement time? If it doesn’t, that’s a red flag.
- What roles does the client’s business need to provide, and for how long?
- How are data quality issues escalated and resolved?
On the DMZ:
- What is the contractual treatment of data quality issues that arise during migration?
- Is there a clear definition of what falls on the client side versus the supplier side?
- How are disputes resolved?
On legacy decommissioning:
- Does the proposal include decommissioning milestones?
- What is the contractual position if the legacy system cannot be decommissioned on schedule?
PDM Accreditation for Suppliers
Iergo Ltd, the PDM licensor, operates a PDM accreditation scheme with three distinct levels:
- Individuals can be PDM certified - they have completed PDM training and demonstrated knowledge of the methodology
- Implementation partners (suppliers) can be PDM accredited - the organisation has shown it can deliver migrations using PDM principles
- Software can be PDM compliant - the tool supports PDM processes such as DQR management
Getting these terms right matters when reading a proposal: a supplier claiming its people are certified is not the same as the firm being accredited.
When evaluating proposals, a supplier’s PDM accreditation is a meaningful differentiator, not because it guarantees a good outcome, but because it establishes a shared language and a shared understanding of the IT-Business interface.
Key Takeaways
- Fixed-price contracts create perverse incentives on data quality that must be explicitly managed through the DMZ
- A good supplier proposal addresses business engagement, the DMZ, and legacy decommissioning - not just technical delivery
- If the supplier has its own methodology, PDM can usually be embedded within it rather than replacing it
- PDM accreditation is a meaningful (though not sufficient) indicator of supplier quality in data migration engagements
Book Reference
Practical Data Migration by Johny Morris (BCS, The Chartered Institute for IT): Chapter 4, “Migration Strategy and Governance”; Chapter 6, “Demilitarised Zones”.