Negotiating software contractsPosted by admin on June 2nd, 2009
Negotiating software contracts is a very important part of your software selection project. The software vendor writes the contract to protect their interests in the engagement. You need to negotiate the contract to protect your interests.
Enterprise business software (ERP, HR, CRM, Financial software, etc.) contracts are typically very negotiable because the software vendors are looking to lock up a long term customer. They know that if they can get a customer in the door even at a discounted rate, they will have a long term maintenance revenue stream that should last at least 5-10 years. The reason for this is that after such a big investment, companies are reticent to change software solutions for many years. Therefore, it is important to remember that the time you have the strongest leverage with the vendor is during the negotiation before signing the contract. Make sure you use that leverage to your advantage.
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