Access this Note and more by filling out your information.
When you register you will also receive:
- A Free Trial Membership which provides additional free research and help on your projects
- Access to survey data, contribute to our research, community involvement and much more
While cost-reduction is an important objective for IT Managers, there can be significant downsides to over-emphasis on price in negotiating vendor agreements.
In order to describe the risks associated with a cost preoccupation, this research note discusses:
- The importance of a holistic approach to contract negotiation.
- Avoiding non-productive price negotiations.
- Recognizing the potential effect on service quality and scope when vendors excessively trim price.
Balance efforts to reduce price against the cost of negotiation and the possible repercussions of a relationship that is not profitable to the vendor.