Stick to the Path You Know

If criteria such as end-user satisfaction and service level agreements are being met, and the contract is still in line with business strategy, the current agreement with your service provider may be extended. If you choose to renew with your provider, you must be certain that your supplier is acting in good faith and is giving you at least as good a deal as you would get elsewhere. Also, be sure to include any necessary amendments in the new contract to ensure it is fit for purpose.

The market will likely have evolved considerably since your contract was conceived and so it is important to understand how your existing contract and the capabilities of your service provider compare to those now available. A rigorous external benchmarking exercise is critical to achieve this understanding. An advisor can prove invaluable at both of these steps with their in-depth market insight and benchmarking experience.

It is also important to identify the changes that have occurred in your organization and confirm the changes which will need to be made. Only then can a new contract be negotiated.

Learn more about extending your contract, or jump start your efforts and contact an EquaTerra advisor today.