This FastTrack Tool is a simpler, less rigorous approach to completing the program. Nonetheless, FastTrack addresses the fundamental elements of the program and is expected to support your efforts to improve the IT function. FastTrack is intended for organizations who have reasonable, simple and straightforward IT environments. Because it is simpler, FastTrack is an accelerated program, designed to be completed in a short period of time.

The process of negotiating a formal agreement or contract with a vendor is very important. It should lead to a common understanding of what the customer expects of the vendor, and the commitments the vendor is prepared to make. The process of negotiating a contract involves ensuring that the agreement addresses all key requirements and any concerns arising from the vendor evaluation.

Info-Tech Tip: For high-risk contracts, such as major custom application development, use professional legal counsel to review draft contracts.

Senior management or the Board must generally approve the more expensive IT contracts for signature. The contract negotiating team must convince management to approve the contract, even if the contract fails to address all objectives.

Info-Tech Tip: In some organizations, the senior approvers may want to review the vendor recommendation in some depth prior to beginning contract negotiations. They may then want another simpler review after the contract negotiations are complete. Use the step-by-step process in this section after completion of evaluation and before contract negotiation, if this is the case.

One of the main objectives of a contract is reduce risks. The contract should eliminate or reduce ambiguities about who is supposed to do what, when and how well. The contract should also define what happens when either party fails to meet commitments. A contract may be unnecessary in a simple purchase; a purchase order may suffice. In complex situations, however, the buyer typically expects more than the vendor wants to commit. Both sides want to reduce their risk. Therefore, there is usually a need to enhance or modify the standard agreement normally proposed by the vendor.

Info-Tech Tip: Focus contract review and discussions on those areas that are of most importance in a purchase. Do not waste energy fighting irrelevant points.

Info-Tech Tip: Negotiation should not emphasize exceptions. The contract must clearly address what the vendor is to deliver, when, and at what level of quality.

The process of negotiating a formal agreement or contract with a vendor is very important. It should lead to a common understanding of what the customer expects of the vendor, and the commitments the vendor is prepared to make. The process of negotiating a contract involves ensuring that the agreement addresses all key requirements and any concerns arising from the vendor evaluation.

Info-Tech Tip: For high-risk contracts, such as major custom application development, use professional legal counsel to review draft contracts.

Senior management or the Board must generally approve the more expensive IT contracts for signature. The contract negotiating team must convince management to approve the contract, even if the contract fails to address all objectives.

Info-Tech Tip: In some organizations, the senior approvers may want to review the vendor recommendation in some depth prior to beginning contract negotiations. They may then want another simpler review after the contract negotiations are complete. Use the step-by-step process in this section after completion of evaluation and before contract negotiation, if this is the case.