Firms are in a far stronger bargaining position during the tendering process than they are once they have agreed to use a supplier,' said Rosemary Mulley, head of consulting at law firm Nabarro Nathanson. Mulley said that one of the major reasons for disputes is that buyers do not prepare properly before going out to tender. IT managers can be taken in by sales pitches, and end up going for functionality they don't need,' she said. Consulting their peers and using independent experts can help firms make informed choices. Analyst firm Forrester Research recently launched its TechRankings scheme, which provides an independent assessment of a variety of e-business products ranked against criteria ranging from ease of integration to cost.
Payment methods can also affect the contract price.
Options may include paying in a lump sum, paying on completion, and paying for targets being reached. Frequently, unsatisfactory contracts are agreed because of the time pressures to reach completion,' said Mulley. The current legal position is too com- plex to be sensibly interpreted by a layperson. IT managers have to balance risks against costs. Clearly, there has never been a greater need for thorough evaluation processes, and good legal advice.