Technology Sourcing Best Practices: Using Term Sheets to Maximize Contract Value
This IDC Perspective explores the best practice of using "term sheets" to streamline and fast-track contract negotiations to achieve business objectives. Vendor negotiations often begin with the exchange of boilerplate templates that contain the basic legal terms and conditions of a contract. Although they may contain critical legal terms, the essential business objectives of the relationship being formed between the parties are often buried in order forms and attachments, or, worse yet, never make it into the final agreement. The parties become "lost in the weeds" as the flow or redlines cloud key business objectives."Successful enterprises have borrowed a playbook from the venture finance community and use 'term sheets' to negotiate critical business terms as part of their technology sourcing and procurement process before the inevitable exchange of boilerplate terms and conditions," says Aaron Polikaitis, vice president of research for IDC's IT Executive Programs.
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