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.
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