Do you have a good insight into the life cycle of your IT Contracts? The Contract Lifecycle Manager provides insight into the life cycle of your current IT contracts. Many organizations have insufficient perception of the current contracts. This is due to the limited management of contracts and the phase in which these contracts are after contracting. This increases the risk of additional costs, services that no longer meet the need, the quality that does not conform to the agreed agreement or services that are unnecessarily continued.
By setting up the contract lifecycle within the organization, the IT expenditure and the associated services remain optimally aligned with current needs. Insight is provided at strategic, tactical and operational level to gain maximum control over status, alignment with IT & sourcing strategy and (changing) business needs and market developments. Current agreements and service quality of services and contracts are taken into account.
CLM supports organizations in the daily management of its IT contracts during the life of the contract. CLM takes into account all life phases of a contract. As a result, organizations are always provided with the information they need to take the right action on time, so that IT services are permanently aligned with business needs and market developments and risks are mitigated. In order to obtain the required information, IDC Metri has drawn up a concrete approach.
The IDC Metri Contract lifecycle management consists of three phases;
Contract file construction
this forms the basis for contract documentation and is used to make an assessment of completeness, state of affairs and the basis for further actions.
Contract lifecycle
this determines the life phase of the contract and provides insight into which business and market developments have an impact on contracted services.
Reporting and advice
this provides an overview of the life phase per contract, the necessary actions in time and the desired adjustments to meet the changing (business) needs.
During the fulfilment of the Contract Lifecycle Manager, assessments are performed on current contracts. This provides unambiguous and transparent insight for each IT contract. For each contract, recommendations and concrete actions are described that must be implemented over time. This could include market conformity checking (benchmark on dimensions: volume, complexity, quality, service delivery and costs/price), an adaptation of services for better alignment with business needs, compliance with laws and regulations and market developments (e.g. technology refresh).
Deliverable result
Recorded contract files
Overview of actions over time
Contract Lifecycle Management provides full insight into current IT contracts and gives practical advice and concrete actions. This involves looking at costs, connection (both in business and the market), compliance and the life phase of the contract. This creates extra value from the contracted services, risks are avoided, reduced, accepted or mitigated, the services are in line with the wishes of the organization and market developments and matters related to the contract environment are guaranteed. Renewed and new contracts are also tested against the IT and sourcing strategy. Based on the gained insight, it is possible to make better use of contracts, to optimize them and thus increase the value and effectiveness of the contract portfolio.