Contract Renegotiation: Is your organisation suffering from any of these contract issues?

  • Published on: 5 November 2019
  • By: Victoria Heritage

 

Contract Renegotiation: Is your organisation suffering from any of these contract issues?

Businesses are renegotiating outsourcing agreements before expiration more often than ever before. The nature of many agreements entered into previously have tended to be too rigid and lack risk and reward mechanisms and opportunities for innovation. Client and provider demands are constantly evolving as their business demands increase, and as such so are IT services and technologies.

 

 

Is your organisation suffering from any of these contract issues?

  • Rigid, inflexible and one-sided contracts and SLAs (Service Level Agreements)
  • Limited access to the most suitable and up-to-date solutions
  • Grey areas in contract and solution/service, leading to opposing expectations
  • Inappropriately long-term contracts with little room for client flexibility
  • Unforeseen costs
  • Little or no innovation, leading to service no longer being best of breed at the anniversary
  • No risk and reward mechanisms, meaning providers aren’t motivated to evolve the contract
  • Lack of meaningful reporting
  • Overpayment for under-delivery

Are you allowing your supplier’s capabilities and performance define your business or IT strategies and costs?

eXceeding believe that both clients and providers should view contract renegotiation as a fundamental element of their relationship and ultimately the contract success. Indeed, a market trend is that contract renegotiation is no longer regarded as a rarity but more as the ‘norm’.

There are always options available to improve on your current provider’s agreement, that they aren’t going to approach you and offer! Whether it is on cost, performance,  service on innovations. It is essential to keep pace with technology advancements and maximise your risk management strategies and competitive advantages.

You should exercise control over your contract and be able to communicate swiftly and concisely with your provider to identify and resolve any problem areas, or opportunities where there is room for improvement.

eXceeding’s extensive experience within this field has led us to believe that this can be achieved in several ways. We will work with you and for you to secure an outsourcing agreement that offers you the best service in terms of flexibility, security, efficiency and cost.

It is all too easy to let contracts just ‘roll on’. Ask yourself these questions:

  • Are you using your suppliers to maximise your competitive advantage?
  • Are you minimising your supply chain risks?
  • Are you taking full advantage of technology advancements?  
  • Are you 100% confident that your current agreement delivers the best value for money today?

eXceeding find that renegotiation of contracts can prove beneficial to all parties concerned, but especially for the client! It can provide an opportunity to improve and enhance aspects of the contract that have proved less than effective and opens the door to discuss duration, delivery, management, solutions, technologies and cost.

Initiating contract renegotiation discussions

Before entering into any outsourcing contract renegotiations with your provider it is essential to be fully armed with a thorough understanding of your existing contract and how the competitive landscape has vastly changed within that time. You must have a renegotiation game plan/strategy in place that ensures any issues raised by your provider can be overcome and that the strength of your bargaining position is made clear and maximised fully.

This is where eXceeding can help with their vast amount of experience and expertise. Whilst we believe renegotiation can be beneficial for both client and provider we will ensure that your requirements are presented strongly, concisely and, where possible, achieved and superseded. The provider will be under no misconception from the outset what you are looking for, how far you are willing to compromise and the revenue loss if an agreement cannot be achieved.

Achieving the outcome you want

It is paramount to utilise all leverage to achieve successful renegotiation of your existing contract. eXceeding can be the strongest string in your bow and would enter renegotiations on your behalf equipped with sound market data based on facts and experience, along with a flexible approach and a strategy that would maximise the end results for your business.

A well defined renegotiating approach is essential and like it or not 3rd Parties are taken more seriously. This is where eXceeding comes in. You could discover, as many businesses have, that with our wealth of experience and expertise in the field of service provider contract renegotiations you can achieve a contract that meets all your requirements and at a cost level that is sustainable well into the future.

If you feel that you may need assistance in all or any of these areas, then you’ve found the right company to take you and your organisation on the journey to the destination you desire! For your free of charge consultation with one of our impartial, unbiased, fully independent experts please visit our Contract Renegotiation page.

 

Message us or call 03333 555 111 for all enquires.