Outsource Telecom Contract Negotiations to Our Industry Experts
Outsource Contract Negotiations to Cass
Negotiating a well-constructed contract can be both challenging and exciting. The science and skill of crafting a well-written contract that covers all pertinent aspects of a sourcing agreement is often forgotten in the rush to acquire products and services required to support the latest business initiative, or in most cases to avoid losing negotiated discounts. Most organizations utilize the vendor’s standard contract with minor modifications to pricing, service level agreements, delivery time frames and warranties, without understanding what crucial liabilities and commitments they are making to the selected vendor along with the legal obligations inherited in the contract.
Companies that implement best practices for sourcing will engage outside expertise to help them through the telecom RFP and telecom contract negotations process to ensure that the final contract meets and exceeds their business requirements while minimizing the potential contractual and legal liabilities.
Why would you outsource your contract negotiations and what should you expect to achieve?
Why engage outside help?
Companies typically only negotiate their telecommunication contracts every three years. During that time frame a lot changes in the industry including pricing reductions, new technologies, improved performance SLAs, new managed services, platform convergence, changes in legal liabilities, insurance requirements, intellectual property rights, etc. including other key contractual liabilities that will be critical to the final agreement that both your company and the selected vendor will commit to perform.
A subject matter expert can help you further reduce pricing, improve vendor support and modify contractual terms and conditions. Negotiating something extra in any of these areas means you will obtain maximum return on the contract while removing unnecessary liability that only protects the vendors or reduces their contractual obligations. The selected telecom contract negotiations expert should be someone who deals with these issues frequently. He or she has the knowledge and tools to make sure your contract meets your business requirements. Since negotiating similar contracts with these same vendors is something they do every day, professional telecom consultants have an in-depth understanding and knowledge of what makes the vendors perform. They also have knowledge of what language modifications have been previously accepted by vendors during similar negotiations. This helps them reduce contractual obligations that can increase your exposure.
What should you expect?
Significant cost reductions over the selected vendor’s offer
Contractual language the offers greater flexibility and scalability as you consume services
Termination language that allows you to terminate for cause and impacts all aspects of the contract from revenue commitment to termination liabilities
SLAs that provide you with a document escalation path and the resource to get your services back online
Improved terms and conditions to allow you to modify your usage or consumption of services without any contractual recourse
A contract that is right-sized for your company and will not allow you to default on contractual requirements
Contractual language that enables both you and the vendor to work towards mutual business objectives to improve you service availability while maintain your business objectives
Minimized or eliminated contractual obligations along with reducing any legal exposure that may be inherited by signing the contract
The expert you engage should not only negotiate the contract but provide your company with the project direction and scope. Make sure that they will engage resources from your company to form a negotiations team that includes the following staff: senior executive, Operations, Support, Purchasing, Legal, Finance, billing analyst, IT and the department that will own the relationship with the vendor. The expert will manage and lead the negotiations, setting milestones for the vendor(s) as well as internal members, making sure that everyone has the same goals and desired outcomes as the team moves forward.
A contract negotiations strategy will be defined, based on your business requirements and an agreed course of action, with everyone on the team empowered to support the final deliverables having specific roles and functions during the negotiations. The expert should act as the lead, or co-lead, negotiator allowing your staff to maintain a neutral position and focus on building a strong working relationship with the selected vendor(s).
Outsourcing telecom contract negotiations for a large contract, critical service or component can seem risky, but if the expert you engage follows a proven process with your vendor(s), the contract you create will allow both your company and the vendor to perform above and beyond expectations while providing a scalable and flexible agreement to manage your critical services.