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Tight contract management vital, users told at SSRG debut

John Riley
Monday 25 April 2005 12:49

The Strategic Supplier Relationships Group, which brings together 10 of the UK's most influential IT user groups, was formally launched last week with an initial focus on software licensing.

The SSRG aims to provide a frank, confidential and constructive environment for user groups and suppliers to discuss policy change, generic issues such as licensing, and the wider implications of supplier decisions.

User group leaders at the launch were told the contract is king when dealing with suppliers. Users should beware signing a last-minute "agreement to agree" on unresolved issues when negotiating with suppliers, keep the contract on their desk even when projects go well, and never hold fire on tackling poor delivery, said Chris French, managing partner at consultancy French Thornton.

Debunking common myths about contract management, French said the idea that you should not need to refer to the contract if the relationship is working well was "balderdash".

"If your supplier's US audit team wants to look at the contract, there is little that you can do, even though you may have a superb relationship with its account directors," he said. "Putting the contract in the top drawer is dangerous. It is the user's responsibility not to be naive."

French urged users to address issues with their suppliers as soon as they arise.

"Typically, a supplier will agree that it is not delivering, but will say, 'hang on for three months and it will get better'," he said. "That rarely worksÉ You need to manage the contract."

At the SSRG launch, Ray Titcombe, chairman of the SSRG, and the IBM Computer Users Association, said businesses' dependence on IT has magnified the damage that can be caused by not getting the user/supplier relationship right.

Welcoming the launch of the SSRG, Kate Mountain, chief executive of local government IT managers' organisation Socitm, said, "This event has demonstrated that there are issues where we as customers can improve our working relationships with suppliers. Socitm has worked with the Office of Government Commerce on similar issues but now the SSRG gives us a broader community to take advice from."

Hooman Bassirian, editor of Computer Weekly, said, "Users need a powerful, unified voice when speaking to suppliers. The SSRG can provide that and we will do all we can to make sure its message is heard."

More articles about the SSRG:

www.computerweekly.com

 

Founder members of the SSRG     

  • The Corporate IT Forum (Tif) 
  • IBM Computer Users Association 
  • UK Oracle User Group 
  • British Computer Society Elite Group 
  • Institute for the Management of Information Systems 
  • The Society for IT Management (Socitm) 
  • Charities Consortium IT Directors Group 
  • Charity IT Resources Alliance  
  • Chartered Institute of Arbitrators 
  • Computer Weekly 500 Club.