[Chapter 26 pdf]

Chapter highlights:

Purpose: This chapter presents methods and strategies for negotiating an IT contract, risks to avoid and proven methods for reaching agreement that will support a successful relationship and mutual project success.

Key points:

  • An effective negotiator is thoroughly prepared and knows the technical and business requirements as well as the strengths and weaknesses of his/her position versus the other negotiating party.
  • Successful negotiation begins with preparation at the outset of the procurement, even before the development of the solicitation.
  • Key areas of preparation include understanding the business needs, understanding the market and contacting customer references.
  • Negotiating a contract for software licenses presents some unique negotiating considerations.
  • There are usually more costs involved in a technology acquisition than the initial sale price. The costs of support and ancillary technology far outweigh any sticker savings that may seem appealing on the original item purchase.


26.3 Special negotiation issues
26.4 Post-negotiation activities