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