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Vendor Contracts Administration

Swingtide can help companies bring order to the administration, management and optimization of their portfolio of third-party IT contracts and third-party relationships. This offering includes the delivery of a comprehensive vendor contracts administration role for companies who need expert review, negotiation, execution, maintenance and administration for their technology contracts.

Depending on requirements, this offering can be designed to provide support to the client in response to both the ongoing flow of requests and in response to organizational-level activities (e.g., mergers, joint ventures, outsourcing). In addition to performance of the day-to-day sourcing and administrative function, this offering includes ongoing optimization of the IT contracts portfolio.

This service offering may be delivered either on an ongoing service basis, as the setup and handoff of a new function within the company or as a one-time portfolio clean-up.

Ideal for Companies:

  • Needing ongoing external assistance in the management of their portfolio of technology agreements and vendor relationships
  • Unable to leverage vendor relationships because of decentralized contracting practices
  • Reducing or redirecting IT spend to higher business value
  • Lacking available resources for clean-up or optimization activities
  • Facing inconsistent enforcement of preferred risk position in contracts

Key Benefits:

  • Access to experienced resources to negotiate lowest cost and market advantageous contracts, standardize best practices approaches to contract terms and to support risk mitigation
  • Leverage of vendor relationships through consolidation and renegotiation of key agreements
  • Streamlining of contract administration processes; standardize staff work and approval processes
  • Helping to avoid common contracting pitfalls – confidentiality breaches, security risks, unanticipated product, support, and interface restrictions and impacts
  • Self-fund technology investments and operating improvements from existing budget levels
  • Clean-up operations: take out unneeded licenses, circuits, assets; eliminate excess capacity to align with current business needs

High Level Approach & Deliverables

  • We start by understanding your current environment in terms of:
    • Major third-party vendor relationships (Software, Hardware maintenance, Telecom, Other vendors); the terms of the governing agreements and associated spend
    • Existence of supporting processes (contract retention, contract administration, staff work requirements, financial approvals, sourcing controls, tools, etc.)
    • Degree of current centralization and the desired level of centralization among regions or affiliates
  • We develop a gap analysis comparing current state to best practices, and then we create a road map for making process improvements
  • Implementation consists of rolling out and performing the new contracts administration functions including:
    • Identifying immediate term renegotiation opportunities in the existing portfolio and leading the renegotiations
    • Implementing recommended process and workflow improvements
    • The ongoing negotiation of business appropriate contracts in response to requests from your organization
    • Providing business case assistance based on best practices staff work standards
    • Coordinating approval of transactions and projects through your affected staff areas: Legal, Corp Risk Management, IT and Senior Staff
    • Administrating contracts (including archiving, retrieval, interpretation and executing or communicating required contractual actions)
    • Supporting you in contract disputes
    • Consolidation of your requirements for efficient buying under Enterprise Agreements
    • RFP development and administration
    • Contractual support for organizational or departmental actions (M&A activity, outsourcing, etc.)
    • Coordinating with Corporate Finance with regard to: coding practices, status of transactions vis-a-vis approved budgets, communication of lease payment schedules, accounts payable coding, etc.
    • The result: an improved vendor contract administration function that delivers higher business value

Technology Business Advisory Overview

ISSUES, LESSONS & TIPS

Don’t confuse people transfer with knowledge transfer

Requiring people to remain “in role” doesn’t matter if the processes change or responsibilities are shared. Require documentation and a knowledge transfer plan.

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