How to negotiate software contracts
It’s not just about negotiating the price. Vendors will negotiate on large contracts so take the time to get it right.
Full article from CAmagazine published in January 2011
A major acquisition such as an ERP system should be considered a lifetime investment.It’s not just a software purchase; it’s a contract that includes maintenance fees, which will exceed the cost of the software in four to five years. A good dose of due diligence is in order not only in testing the software and assessing the vendor, but also in reading the contract.
- Pick the right time to negotiate
- Give and take
- Define your scope
- Nail down the implementation costs
- Define the terms used
- Define roles and responsibilities
- Include a project plan
- Don’t overspend on licences
- Provide incentives to complete the work
- Get a clear service level agreement
- Highest Scores
Why Work with Independent ERP Consultants?
At 180 Systems, we are independent ERP selection consultants and do not sell or implement any product or accept any compensation from vendors or implementers for our advice or services. Our only goal is to help you choose the right system and optimize your ERP investment.
Contact 180 Systems to learn more about:
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ERP budgeting and cost analysis
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ERP selection strategy
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ERP project advisory and RFP support
Written by Michael Burns
Michael Burns is both founder and president of 180 Systems. Michael has provided consulting services to a wide variety of industries including manufacturing, construction, financial, distribution, retail, third-party logistics, professional services, real estate and not-for-profit organizations. Michael is a Chartered Professional Accountant (CPA) and is certified as a PMP (Project Manager Professional) and as a Certified Information Technology Professional (CITP).
Michael has written extensively for a number of professional magazines and spoken at IT conferences. He was also a part-time professor at University of Toronto and Toronto Metropolitan University (formerly Ryerson). Michael’s experience also includes software development, project management and accounting.