Essential IT Contract Negotiation Tips for ROI Success

Be honest… how often have you thought about negotiating your IT contract with your provider? Many don’t, and as a result, their businesses are susceptible to slow response times, hidden fees, and set lists of vendors.

This isn’t sustainable. A real partnership is, and is established through a balanced contract that promotes proactivity and accountability. Let’s talk about what goes into these types of contracts.

Focus on Resolution Targets, Not Response Times

Let’s say a contract guarantees a response within an hour. That’s great, but what if it still takes them a week to restore your access to a key piece of equipment?

A good professional Service Level Agreement, or SLA, needs to define both the provider's response time and the expected timeframe for resolving the issue at hand. This is called the resolution target and is meant to incentivize the provider to deliver lasting solutions rather than simply processing service tickets.

Lean on vCIO Services to Establish a Strategy

If your IT suddenly surprises you with an expense, you have a problem. A good contract with an IT provider should include regular, mandated meetings with a Virtual Chief Information Officer (vCIO), an advisor focused on high-level strategy. Your vCIO should meet with you quarterly to review your budget, hardware lifecycles, and overall IT roadmap. This helps build a relationship by developing a growth strategy that reflects your goals, rather than relying on a break-fix approach.

Ensure You Can Leave Without Issue

Some other IT providers can get a little clingy, handcuffing your business to their services. This is something that your contract needs to address. Make sure you have complete, 100 percent ownership of your data and passwords to ensure a clean break, along with clauses that require the provider to earnestly assist in the professional transition of your environment if you choose to work with someone else.

Make Key Demands: Predictable Pricing and a Baseline for Security

Cyber insurance requirements are getting tighter and tighter, which means security absolutely needs to be part of the services you receive from your IT provider. Furthermore, it should involve mandatory 2FA, MDR monitoring, and immutable backups.

On a related note, you need to ensure your own operational efficiency. This means you need to negotiate a flat-fee model that covers all essentials and shields you from variations that would otherwise cause budget fluctuations.

When all is said and done, your IT agreement should be a comfort, giving you a foundation to build your success on. If you’re finding yours to be more stressful, it is probably time for a change. Learn more about the services we offer and request a totally transparent review of your contract by calling JensenIT at (847) 803-0044.