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Getting on Top Of Contracts

January 6, 2011

Data suggests that many organizations have seen the volume of service and solution contracts more than double over the last 10 years. This surge has placed tremendous pressure on tradtional resources and management systems, many of which have not adjusted to the needs of managing such relationships.

Services and solutions contracts demand far more intelligence and support than traditonal product agreements. That’s because requirements must be better defined, commitments more clearly aligned and outcomes / outputs more actively managed. The probability of performance issues or the need for renegotiation is also higher.

These factors place pressure on resources and create stress on procedures. Very few organizations – buy-side or sell-side – have invested in planned development of their contracting capabilities. Research shows that this has resulted in lengthening cycle times and an increased percentage of contracts resulting in claims and disputes. Of course, in some high-profile cases, there have been enormous failures and a high volume of outsourcing and managed services contracts (estimates suggest up to 70%)  do not achieve expected goals – for either party.

A few organizations have mastered this challenge and built the contracting and commercial capablities needed to flourish in an outome-based world. They have restructured to address the complexities of a global economy. They have developed processes and systems that enable flexibility and adaptability in the face of continuous change.

It is around these themes that IACCM has built its 2011 conference series, with its three regional conferences this year focussing on the world of services and outsourcing. It has assembled speakers from many of the companies that are showing leadership in this field and are ready to describe how the global networked economy and the transformation to a service-based model has impacted their operations, their contract standards, their commercial organization and their contribution to business results.

The agenda – and registration details – for the first of these events, to be held in Orlando on March 1st – 3rd, can be seen at www.iaccm.com/americas.

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