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Vendor Contracts Compliance

Swingtide can help companies both with an assessment of the current state of their contract compliance and with the development of a sustainable program to become and to stay compliant.

Contract compliance can no longer be considered a rainy day activity. While the frequency of software publisher audits is increasing at an alarming rate, there are many other pressing internal and external factors that make it necessary for companies to know what they’re entitled to under their technology contracts. Factors include M&A activity, entering or exiting outsourcing deals, the adoption of complex technologies (e.g., virtualization), or client cost reduction programs. All involve reckoning with vendors and exposing compliance issues.

This offering results in a compliance process assessment report, an identification of the highest priority compliance risks and a specific mitigation approach for each identified risk. In addition, Swingtide will provide a program implementation roadmap. If implemented, the specific mitigation recommendations and the overall program will ultimately result in practical risk reduction and concrete cost avoidance with improved vendor relationships and greater contractual flexibility.

Many elements of the Vendor Contract Compliance offering are described in more detail in “Software Compliance and Software Portfolio Optimization – Balancing Disparate Risks” presented at an Information Technology Financial Management Association conference.

Ideal for Companies:

  • Trying to understand and mitigate IT and corporate risk and exposures
  • Seeking immediate assistance with an active software compliance audit
  • Requiring a fully integrated analysis of financial and legal risks, especially when subject matter responsibility is divided across multiple business and corporate services owners
  • Consolidating or integrating operations
  • Acquiring, divesting, or spinning off businesses

Key Benefits:

  • Elimination of budget surprises from the exposure of compliance issues
  • Mitigation of risk
  • Quantification of internal and external exposures; assessment of financial obligations and potential cost reductions with actual license entitlements vs. license consumption
  • Improvement of vendor relationships; proactively improving and leveraging negotiating positions with third-party software publishers
  • Understanding the life cycle of processes that must be established to become and remain compliant

High Level Approach & Deliverables:

  • We start by understanding your requirements via interviews with stakeholders on all aspects of your technology related third-party contracts with emphasis on software
  • We then proceed with a discovery process that includes the review of significant agreements, identification of major contractual obligations, the adequacy of current state systems (tools), processes, and policies to track usage and entitlements and to enforce compliance
  • We perform a gap analysis that identifies gaps between license entitlements and deployments, and between current and ideal practices in terms of the roles, processes and tools that would be needed to support a compliant environment
  • We quantify license compliance related financial exposures and potential cost avoidance related to program implementation
  • Finally we provide a recommendation report that includes:
    • The immediate term identification of priority compliance exposures and the proposal of specific tactical approaches for addressing each of the priority vendors and products; and
    • A comprehensive detailed roadmap for a compliance program, including processes, roles, tools, organizational policies and the organizational communications approach required to implement and sustain the program
  • If needed, Swingtide will take the lead in active mitigation and negotiation approaches for priority exposures and help to implement a best practices compliance program
  • The result: understanding and mitigation of contract compliance issues along with a roadmap for continuous improvement

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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