Negotiate-IT Outsourcing-Company
Outsourcing IT has become a growing solution for business and technology consulting, web portal development, application services, custom software development, testing and validation services for larger corporations or a smaller company.
Larger corporations often use an end-to-end solution approach, where all of their IT needs- ranging from ERP business solutions across all business locations, maintenance and support applications or IT infrastructure. A smaller company may outsource IT services for their corporate website design, web content writing, Internet Marketing, Blog content, web development, e-commerce application, and SEO friendly web for inbound marketing.
Knowing the exact services you ‘really’ need is the “starting point” of negotiation an outsourcing deal. Very first step to start negotiation process for outsourcing IT project is the preparation of a perfect RFP (Request for proposals). For drafting the best RFP, involve the associated professionals. RFP should contain all the necessary and reference documents required to finalize a deal. Here are a few negotiation points you can use when looking for an Outsourcing IT company:
Security - The outsourced IT firm will have access to all of your project details, so security is of utmost importance. Your assets that is intellectual property and information need to be secure
Team - Am I really going to be provided with qualified professionals? Ensure that you really get the quality hours for which you’re paying for.
Project Manager – Will the software development team have someone full time who is experienced in managing Outsourcing projects?
Cost Savings – Costs fluctuates based on the Team profile, services provided, geographical location, overheads and profit margin of the company. Compare team profiles, services offered by individual vendor and asked for discounted services.
Location – do you really need on-site support? If not, it does not matter where the Outsource IT firm is located.
Outsourcing Contract - The outsourcing contract is the logical last task of the negotiation process, and as such is of fundamental importance. A well-crafted contract will guarantee that both parties are in agreement. In order to take full advantage of outsourcing and minimize risks all involved parties should carefully consider a few guidelines on Scope of Work, Pricing, Service Level Agreement, Intellectual property, Outsource Governance, Contract Termination, Transition, and Dispute Resolution.
Tags: design outsourcing, offshore outsourcing india, outsource software, outsource software development, outsourcing project
I am a lawyer. I have recently surfaced from a complicated IT outsourcing contract negotiation which took many months and lots of difficult negotiation on all of the areas you mention, largely caused by an initial draft which was wholly one-sided. Although this tactic has the benefit of protecting the client of the law firm issuing the draft, it also has the benefit of enabling that client’s law firm to justify lots of fees while the offending provisions are gradually neutered. This may be fine where both clients have equally deep pockets and available time, but not otherwise. Is there an accepted industry standard document which strikes a reasonable balance between the interests of the outsourcing entity and the provider of the outsourced services? Hugh
I am a lawyer. I have experienced that this may result in any negotiation, IT or not, because one party relies on the agreement drafted by the other party and in good faith. Interpretation of any clause may be one way or another. A lawyer falls in such trap when he is the party who signs in good faith, as a lawyer may drop his defences in over confidence, and this is not unusual. But the same lawyer would scrutinise every word looking for hidden traps, for he may loose his face otherwise. We lawyers are just human beings when dealing in our own case, i.e. , not infalliable. Experience comes only after the event. May God help us.
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