Developing Third-Party Service Contracts

Developing Third-Party Service Contracts

This IDC Perspective provides an overview of key issues in developing third-party service contracts in light of a predicted rise in contract IT labor."Enterprises increasingly rely on external IT labor either to manage defined projects or to augment the existing in-house IT workforce. The ability to rapidly establish third-party IT service contracts will be a key agile procurement capability, especially given the frustrating challenges of finding the right skills in a constrained labor market," says Dr. Ron Babin, adjunct research advisor with IDC's IT Executive Programs (IEP). "IT labor costs are rising quickly, and organizations will hire more contractors. Organizations should be prepared for an ongoing practice of hiring contract IT labor by creating model contracts. Established contracts should be managed consistently, perhaps using AI-enabled contract management software. All vendors should be regularly assessed using standard evaluations and industry benchmarks."

Please Note: Extended description available upon request.

Executive Snapshot
Situation Overview
Structure of Contract
Best Practices: Third-Party Contracts
Advice for the Technology Buyer
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