60%+ IT Vendor Contracts Are Substandard

October 15, 2017          0

Most Procurement and Strategic Sourcing practitioners will agree contracts / agreements should includes basics such as scope, service / product definition, SLAs and KPIs, and near- and long-term pricing levels.

Yet, McKinsey’s research has found that 60%+ IT vendor contracts fall short of basic standards, resulting in failure to deliver value.

Not surprisingly, CIO frustration with Procurement is increasing.

IT sourcing is complicated, but complexity breeds high savings opportunities. Our experience shows IT Sourcing cost reduction opportunity of 20% – 50% for categories including Network, Colo / Data Centers, IT Professional Services, and Hardware.

 

 

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