TECH CONTRACT REVIEW
A well structured technology services contract can be a very powerful ally in helping to achieve business goals. At times smaller businesses may not have a contract in place for the technology services they use and instead have a more casual engagement. This can work fine in the early days of business operations and is often a necessity in managing the P&L. However as a business matures, having appropriate technology services contracts in place can really help move a business forward, closer to it's goals.
Technology Services Contracts may be for the supply of day to day support of your businesses technology requirements. Such as setting up new users, resolving issues etc. It could be to provide Cyber Security management services or even just your office broadband to keep your team online.
Contracts covering all these types of services and many others can be structured in ways and with clauses that can really work for the business. Equally they can work the other way. And this is often simply because of misunderstanding in requirements between the business and the provider.
Overcoming such misunderstandings requires a person to liaise on behalf of the business who deeply understands the worlds of business and technology. In structuring these contracts for success the types of tasks that are important include:
Independent Vendor Analysis
Tender or ‘Request for Proposal’ Preparation
Technology Management Review
The key here is in understanding the business goals and ensuring that the contracts in place support these. Understanding how the business intends to achieve these goals is also vital. For example if the business is planning for 30% growth in sales for the next 3 years can the exisiting staff, office space and broader infrastructure support this or will more resources be needed? Do the contracts support this without expensive changes or additions?
Supporting business goals can involve services such as:
Procurement strategy development
Advocate to assist Commercial and Legal advisers
Value for money assessments
Risk Register creation
If the business is planning for 30% growth in sales for the next 3 years can the exisiting staff, office space and broader infrastructure support this...?