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Understanding negotiable options in software contracts

9/29/2011

To help information technology professionals with potential software contract talks, a recent MultiChannel Merchant article represents several terms of use that may be negotiable.

Possibly the most important aspect, the total costs associated with an IT contract might be negotiable, depending upon the third-party vendor. However, IT professionals need to have the appropriate expertise to figure out where. Most of the time, though, significant price cuts will not be negotiable. Similarly, companies will not be able to adjust fixed prices for their services, as too many variables outside of the vendor's control exist.

In addition, vendors are unlikely to grant companies a guaranteed implementation time on a given schedule, as the installing customer often fails to complete their own internal tasks on time, which would push the process back.

Another important aspect IT professionals need to understand is that most contracts will limit the liability to the total of what they pay, meaning they need to be aware of potential failures and the ramifications associated with them, especially financially.