Hi Sweta,
Your initiative is highly appreciable. Congratulations!
Appraisal software can be costly, and it can vary based on the complexities in the process, levels in appraisal, number of appraisals per year, type of appraisal (e.g., Self Appraisal - Appraisal - Review pattern, Goal setting and review, 360 feedback), data to be captured in the appraisal form, rating logic, fitment/normalization, reports, etc.
It has been observed that no two companies would be following the same process. So, my recommendation is to prepare a complete business process document with process flow, form parameters, reports required, business logic, etc., and share it with the vendors interested in supplying software.
Please avoid asking about cost upfront. This may lead some vendors to come up with a 'figure' to secure the order and later fail in delivering the software. Because, at the end of the day, the business should make a profit.
Also, if there is no HRMS in place, before getting into performance management software, get HRMS organized. Otherwise, it can be very difficult to ensure the accuracy of basic employee data, reporting relationships, etc.
For any successful implementation of Performance Management software, 3 to 6 months are required if requirements completely match with a ready-to-use product. Otherwise, the time required to understand and develop customization can be extra.
As the appraisal process is one of the most sensitive processes in any organization, you may need to take extra care when you launch the software. Ensure that employees and managers are properly trained to use the software and are aware of best practices.
Best of luck