Telecom Contracts: Auto-Renewal Can Dent Your Wallet


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Enterprises spend 12% of their IT budget on communications services. While much effort goes into the initial selection of vendors, the renewal of these contracts gets little attention.

This note addresses the following elements of managing contract renewals:

  • Reasons for actively managing contract renewal.
  • Involving accounting and purchasing in the process.
  • Assessing future needs.
  • Evaluating the incumbent supplier.
  • Deciding whether to switch suppliers.
  • Negotiating a new contract.

Enterprises that actively manage their communications services contract renewals achieve lower costs and can take better advantage of available services and features.

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Search Code: 9293
Published: August 3, 2007
Last Revised: August 3, 2007

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