Sourcing, procurement and vendor management (SPVM) leaders who do not adequately prepare
for vendor negotiations reduce their organization’s bargaining power and increase its risk. Follow these eight steps to successfully plan and execute software and SaaS negotiations to optimize pricing and terms.
Key findings
- SPVM leaders who do not collaborate with IT and business stakeholders fail to optimize costs and minimize risks when negotiating software and SaaS contracts.
- Many SPVM leaders do not know what questions to ask and when to ask them to identify hidden costs and missing terms, which can result in budget overruns and noncompliance fees.
- CxO power can be leveraged to improve pricing and T&Cs during final negotiations, but insufficient preparation, communication and planning can result in missed opportunities.
- Failure to communicate contract terms, metrics and vendor policies to asset management teams limits their ability to maintain robust asset management processes for audit readiness.