4 IT contract negotiation strategies to drive value in 2021

Challenges with knowledge transfer and remote transition of services in an environment constrained Knowledge acquisition and transfer cannot be successful without active participation from the enterprise client. During vendor selection, enterprises should ask structured questions around how processes and procedures are documented, such as the following:

• Will a process discovery tool be used?
• What requirements are needed from the client to perform training? For example, will client trainers be leading or supporting? Will they be working local hours?
• What tools are needed for interaction and documentation sharing — i.e., virtual conferencing and/or knowledge management tools?
• Who will be providing those tools, and are there any extraordinary technology and connectivity requirements, such as laptops for portability; accessories, including headsets and video cameras, for video conferencing; and home connectivity enablement?

Overall, savvy enterprises are shifting their IT contract negotiation strategies for effective IT sourcing and outsourcing engagements to ensure cost reduction goals and target required business outcomes are met. With typical business environments undergoing massive changes in a short period of time, it is critical to cover all the necessary bases for continued stability, security and mitigated risks to help ensure sustained value in the year ahead.

About the authors
With more than 30 years of experience, Steven Kirz is a senior director at West Monroe, a national business and technology consulting firm. He specializes in helping clients maximize competitive advantage through innovative technology solutions and uniquely successful vendor partnerships. Bringing expertise in strategy development and negotiation experience across multiple disciplines and industries, he focuses on IT and business process insourcing and outsourcing, application development and maintenance, and complex sourcing.

Rahul Singh is a senior director at West Monroe. With decades of experience driving IT strategy, innovation and IT delivery and leading complex transformation for global organization, Singh has a proven track record in driving value from digital technology and operational transformation. He has served as both CTO for multiple Fortune 50 companies and as a consultant leading complex, large-scale transformation programs.

David Borowski is a director at West Monroe. He has extensive experience evaluating, implementing and managing both retained and outsourced business services environments globally and has delivered more than $1 billion in cost savings, synergies and value for his clients. Specializing in business process optimization and outsourcing, IT outsourcing, domestic and international operations, and supply chain process improvement, his projects have transformed a multitude of functional areas for enterprise clients.