IT Contract Management
Contract Tracking to control cost, performance and risk
IT Contract Management is the process whereby an organisation systematically manages, monitors and optimises all contracts with IT suppliers throughout their entire lifecycle – from negotiation and signing to evaluation, renewal and termination.
All IT contracts are centrally managed, monitored and optimised throughout their entire lifecycle by IT contract management, from negotiation to renewal or termination.
Why is IT Contract Management important?
The contracting policy provides frameworks and guidelines for covering risks and dependencies in agreements and specifies, among other things, which contract templates may be used.
The aim is to guarantee transparency, compliance and added value in all IT collaborations by ensuring that suppliers deliver on their promises, detect overspend and, last but not least, that contracts always remain in line with business objectives and governmental regulations.
The PACT approach of IT Contract Management
After you have signed an agreement with PACT Association, we help you to:
- Assess the quality of your contracts, and improve/renegotiate terms and conditions where necessary.
- Store all contracts in one central location.
- Monitor deadlines and renewal dates.
- Align expectations, payments and deliverables.
- Regularly evaluate the supplier performance based on their Service Level Agreements (SLAs) and balanced performance scorecards.
- Check payment schedules with contractual pricing conditions to avoid duplicate or unnecessary payments.
- Better aligning new contracts with business strategy and legislation.
- Introduce a good IT governance structure to ensure that performance failure is identified and escalated in its early stages.
Result of IT Contract Management
When an organisation applies IT Contract Management, it can count on clear results and significant benefits at both the operational and strategic levels.
The first result is greater overview and control over all IT contracts. Because all agreements, terms, costs and conditions are managed centrally, the organisation knows exactly what obligations exist and when contracts expire or need to be renewed.
In addition, IT Contract Management leads to better cost control. By regularly evaluating and comparing contracts, the organisation can eliminate redundant services, negotiate better rates and avoid unnecessary expenses. Invoicing is also easier to control, as it is clear what services and prices have been agreed upon.
Another advantage is higher quality and reliability of IT services. Suppliers are assessed on the basis of their Service Level Agreements (SLAs), which makes performance measurable and shortcomings easier to identify. A good governance structure ensures that risks are reported and followed up more quickly. This encourages suppliers to maintain their service levels and increases the overall quality of service.
In addition, IT Contract Management improves compliance with laws and regulations. All contracts are assessed against internal policy rules and legal requirements (such as privacy legislation or security standards), which reduces legal risks.
Conclusion
The process provides more strategic control. Because IT contracts are better aligned with business objectives, the organisation can deploy its IT investments in a more targeted manner and respond more quickly to changing needs or market conditions. This objective can then be stated in the specifications when the existing supplier is benchmarked.
succes story
Are your IT contracts compliant?
Make sure that your IT contracts are in line with regulations and still workable for your IT operations.
