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April 2010 Volume 1

Vendor contract management key to cutting costs through renegotiation

The economic downturn is still providing strong incentive for CIOs to practice vendor contract management -- and there isn't a contract term or condition that isn't immune to some nitpicking: Does the cost-of-living or inflation-rate clause in that outsourcing contract still represent what I should be paying for labor? Does that currency conversion clause need adjusting? More vendor management resources for CIOs Outsourcing IT application management on rise for 2010; here's why Tips to save you money during software vendor negotiations Staffing augmentation labor rates continue to be targets of cost savings for CIOs -- as seen by such questions above. "CIOs are saying we've looked at our labor contracts, now let's have a closer look at what else we can do with our other vendor contracts or software maintenance contracts and are willing to look at it clause by clause, and term by term," said Christine Ferrusi Ross, an analyst at Cambridge, Mass.-based Forrester Research Inc. Also under way are efforts to consolidate vendor ...

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