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Here are some real life examples that cause companies to never achieve market competitive prices or strong terms and conditions and SLAs with teeth and stiff penalties from their vendors.
Delegating telecom contract negotiation responsibilities to an individual who doesn’t have strong negotiation skills backed with technical knowledge.
The individual that negotiates the telecom contracts is overwhelmed with his/her workload and doesn’t have the time to properly analyze proposals to make a sound decision and instead rushes to just meet deadlines at a high cost to the company.
The person that renegotiates contracts either has developed a long term relationship with particular vendors and doesn’t bother to engage in serious contract renewal negotiations and accepts a small discount to show management that he/she has accomplished something.
These are just a few of many reasons that affect the end results of companies’ telecom contract negotiations including pricing, terms and conditions and SLAs.
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