|
Page 8 of 8
Conclusion
The contract is the key instrument controlling an enterprise's relationship with
its vendors. Service contracts are becoming increasingly complex due to a
number of factors, which include growing diversification of offered services, an
increasing tendency among buyers to use multiple providers, the continuing
integration of business processes with Internet and IT through e-business initiatives,
and the further development of offshore outsourcing. At the same time, both
buyers and suppliers are becoming more informed and sophisticated regarding
expectations.
The key to developing a successful contract lies in taking a careful look at each
phase in the contracting lifecycle and ensuring that all elements are given due
attention, from initial scoping to contract termination and secession. A poorly
developed RFP can be nearly as detrimental as neglecting to monitor service
levels at a later date.
As contracts become increasingly complex and vendors multiply, contract
centralization and establishment of a VMO are becoming more important.
Without some central control, assigning roles and responsibilities and ensuring
that all requirements are being met will become very challenging. This is likely
to become particularly evident in disaster recovery or in responding to audit
requirements.
Contract management is an imperative. Structuring that management depends
upon the particular situation of the company and its suppliers. Standardized
processes, simplified procedures, contract monitoring, relationship management,
and contract consolidation can all have beneficial results. Overall, improved
vendor management control will result in improved efficiency, lower cost, and
better collaboration with vendors.
(Endnotes)
1 Modified from State of Louisiana Sample Generic Contract
2 Modified from State of Louisiana Sample Generic Contract
3 Excerpted and summarized from "Application Service Provider (ASP) Service
Level Agreement (SLA) Guidelines for the Federal Marketplace," Information
Technology Association of America ((ITAA), 2001)
About the Author
Brian J. Dooley is an author, analyst, and journalist with more than 20 years' experience in analyzing and writing
about trends in IT. He has written six books, numerous user manuals, hundreds of reports, and more than 2,000
magazine features. Mr. Dooley is the founder and past president of the New Zealand chapter of the Society
for Technical Communication. He has been a Senior Analyst for Datapro (Gartner), and a Senior Product
Information Specialist for Unisys Corp. He initiated and is on the board for the Graduate Diploma of Technical
Communication program at Christchurch Institute of Technology, and he is on the editorial advisory board for
Faulkner Technical Reports. Mr. Dooley currently resides in New Zealand.
Info-Tech Research & Analysis
This is an independent, non-sponsored research report. It was not funded by any vendor or other party.
Disclaimer
This material is for the general information of clients of Info-Tech Research Group. It does not constitute a
personal recommendation or take into account the particular objectives, situations, or needs of individual
clients. Before acting on any advice or recommendation in this material, clients should consider whether it is
suitable for their particular circumstances and, if necessary, seek professional advice. The information contained
herein has been obtained from sources believed to be reliable. Info-Tech disclaims all warranties and conditions
as to the accuracy, completeness or adequacy of such information. Info-Tech is not liable for errors, omissions
or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole
responsibility for the selection and use of these materials to achieve its intended results. Opinions expressed are
our current opinions as of the date appearing on this material only. The opinions expressed herein are subject
to change without notice. We endeavor to update on a reasonable basis the information discussed in this
material, but for certain reasons we may be prevented from doing so.
© 2006 3409945 Canada Limited, operating as the Info-Tech Research Group ("Info-Tech"). All rights reserved.
Reproduction in any form without prior written permission is forbidden.
Note: All Web links in this document were checked for accuracy and functionality at the time of publication.
We cannot, however, guarantee that referenced Web sites will not change the location or contents of linked
materials, and will not be held responsible for such changes.
This article was originally published by Info-Tech Research Group. Copyright (c) 1998-2008 Info-Tech Research Group. All rights reserved. Reprinted by permission.
Info-Tech Research Group is a professional services firm dedicated to providing premium research and objective advice to IT managers of mid-sized enterprises. The firm's products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. Its practical approach is designed to have a clear and measurable positive impact on your organization's bottom line. Info-Tech serves over 21,000 clients at 8,000 organizations around the world.
Only registered users can write comments.
Please login or register.
|
