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Vendor contract management key to cutting costs through renegotiation
This article is part of the April 2010 Volume 1 issue of CIO Decisions
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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News in this issue
One month into 2010, the IT budgets picture is still ambiguous, with two consultancies offering different outlooks and CIOs juggling between keeping costs low and making necessary upgrades.
Agile IT can be realized with IT services management best practices and project portfolio management, but IT leaders need to clean house first.
Enterprises are finding ways to use vendor contract management as a means to cut costs by renegotiating contracts down to the maintenance-clause and business-unit levels.
Doing more with less remains the mantra for CIOs as we dig into our IT Priorities Survey on technology spending. The big priorities? Mitigating risk. Essential upgrades. Cutting costs.