# What is Vendor Lock-In in HR Software?

Vendor lock-in happens when it’s hard to leave a provider due to contracts or data formats. SMEs must check exit options.

Source: https://faqtic.co/glossary/vendor-lock-in

## Why it Matters for SMEs

- Reduces risk
- Protects flexibility
- Improves bargaining

## Example in Practice

Factorial offers easy data export to reduce lock-in risk.

## Frequently Asked Questions

### Why risk?

Switching costs can be high.

### How avoid?

Choose open formats.

### Factorial lock-in?

Minimal, with exports.

---
Canonical HTML: https://faqtic.co/glossary/vendor-lock-in