Specsavers' framework contract with Fujitsu Siemens Computers,
announced earlier this week, points to how global IT contracts can
be constructed to match business expansion plans.
The optician retailer has signed a global deal with Fujitsu
Siemens Computer to support IT in new stores internationally and
refresh legacy systems. The contract has needed to address two
issues. First it needs to work globally, in order to support the
company's plans to expand into new markets quickly. This is easier
said than done, given that suppliers often struggle to offer truly
global services agreements.
Second, the contract has to be flexible enough to support the
business requirements of individual country managers at Specsavers,
whilst allowing them to benefit from the economies of scale that a
global deal offers in terms of cost savings.
The framework agreement works a bit like a government contract,
laying out broad terms and conditions for a ready-made contract.
Contract law will differ country to country.
Paul Woods, global account director at Fujitsu Siemens Computers
in charge of the Specsavers account, says, "Every principle for
contracting in each country is agreed up front, including preferred
rates. We cannot guarantee a uniform price but we do have a target
price and critical service level agreements (SLAs). All we do in
each country is work out the legal side."
This type of a contract requires careful planning, says Mark
Beard, IT project office manager at Specsavers. "There is nothing
worse than not trusting the supplier so it is very important for us
to have regular contact with the account manager"
Regular meetings with the supplier is critical, according to
Wood. This became especially important a few months ago when Woods
replaced Jonathan Moore, the previous account manager at Fujitsu
Siemens Computer, who had been looking after the Specsavers account
for three years.
It was a close relationship according to Moore. "I used to meet
Mark Beard two times a week, depending on what was going on." So
when he left the account Moore remained in contact with Specsavers
until Woods was able to take over control of the account.
There are plenty of lessons IT directors can take away from the
way Specsavers has worked with its supplier in this contract. The
first concerns working in a global economy. Richard Hannah,
managing director of IT practice for EMEA & Asia-PAC at
Equaterra, says, "Since very few suppliers are truly global, this
type of contract is becoming more common place. It requires both
buyer and supplier to be pragmatic and flexible."
Hannah recommends businesses ensure SLAS are suitably detailed.
Second, the buyer must be clear on the requirements of the
contract. Third, the commercial and legal arrangements are sound,
and technology export controls worked through.
"The lesson we have learned is that the contract is all about a
partnership with Fujitsu Siemens Computers," says Beard. "We do not
try to screw our suppliers. It is important Fujitsu Siemens
Computers gets enough value from Specsavers to allow it to invest
its best people with us."