Let the expert suppliers help the business meet its targets
through IT rather than dictating how they should do it, IT
suppliers say.
IT trade organisation
Intellect has launched a guide aimed at helping businesses and
suppliers work together to draw up contracts that include business
targets for suppliers.
Intellect said because of the recession organisations need to
get more out of IT contracts.
The guide to Outcome-Based Agreement (OBA) describes what is
required for this type arrangement to work. It also explains the
importance of suppliers and businesses working together.
"Traditional contractual agreements operate on an arms-length
supply of technology services or products which rarely take into
account the performance requirements of the customer," said
Intellect. "Across the economy OBAs go beyond just the delivery of
products or services and provide a genuine value for money
proposition."
Peter Brudenall, partner at law firm Hunton & Williams, said
this type of contract can work if customers and suppliers are clear
about what they want.
"If the supplier understands where the customer wants to be in a
few years and this supplier is sophisticated this works quite
well."
He added that the major suppliers prefer this type of
arrangement.
This is because they are the experts and can achieve targets in
the best way rather than what the customer thinks is the best way.
"This is how top tier IT suppliers want to work because they not
like being Micro managed and customers can get more out of them if
they are more flexible.