IT Procurement

Thinking about IT procurement? Scared stiff?

We understand. Tune in below, listen to the 9 issues you should watch out for and finally approach the task with confidence.

See below for the complete transcript of this episode -

IT procurement can be an overwhelming endeavor, even for those well-versed in the industry.

Where possible, take the opportunity to either provide your own terms and conditions or negotiate those provided by the supplier. Also, consider whether you are eligible or required to use the Government Information TechnologyContracting framework.

To help you out, You Legal has put together a list of nine areas that you need to look at closely when undertaking your IT procurement process.

1. Don’t commit without negotiating all the terms and conditions. It’s not enough to focus just on what you are getting, you also need to look at the terms which you are getting it under. One way to achieve this is to deal with several competitors at once up to the point where a final contract has been negotiated. This will keep everyone feeling competitive and hopefully provide you with the best deal.

2. Define the Deliverables. Be sure to check out what is provided in terms of warranties on functionality, how service agreements function, and what definite outcomes you can expect.

3. Hold the Supplier to Timeframe. Your agreement should include a clear project timeline with set targets for deliverables. Suppliers tend to avoid this under the excuse that delays are frequently caused by clients failing to fulfill their obligations, but there are ways around this.

4. Prevent the supplier from walking away if it doesn’t work out. Performance testing of your IT solution, leading to a refund of fees if it doesn’t work, is imperative.

5. Clarify what you are paying the supplier. Price should be clearly expressed in figures and contracts with vague representations such as “current rate” or that allow periodic changes to rates.

6. Define the scope of the IP. Find out and abide by the uses permitted under the license for your software. It may have limitations such as geography, field, or number of users.

7. Protect your IP. If you want to own the product you paid the IT supplier to develop, you need to obtain an express assignment. Otherwise, there is nothing to stop them from selling the IT solution they developed for you to someone else.

8. Make sure the supplier is liable for all the obligations they have agreed to.

9. Get professional help and seek assistance with either negotiating or drafting the final contract. It is well worth it in the long term.

If you need any assistance in relation to an IT contract, feel free to drop us a line or give us a call at You Legal We love to hear from you.

What Should I Do Next?

Contact us if you would like further legal advice on IT Procurement.  Our lawyers at You Legal will be happy to assist you in whatever way we can.

* This blog is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.