I need help with contract management and renewal

The role of software and cloud suppliers continues to grow while internal IT teams are decreasing in size. The number of suppliers to manage is exploding, while the teams responsible for managing them are remaining static. Contracts are rapidly becoming more complex due to rules and regulations such as GDPR, and the multiplicity of products and services included in contracts.

To help CIOs and procurement departments cope, we have designed a range of services dedicated to vendor management and IT contract management.

Our procurement team offers you complete support in your buying process.

Managing a large volume of contracts requires the right processes and tools. Elée has developed a platform and processes for IT contract management. We allow you to manage the life cycle of contracts (signature, renewal, change management, reporting, etc.) and related requirements (declarations, monitoring of customer and supplier obligations, collection and monitoring of regulatory declarations, etc.).

The processes we build are adapted to your organization and your supplier policies. A dedicated contact includes the management of the service and of the teams who will carry out the day-to-day actions.

We produce monthly indicators to measure activity and to forecast tasks and actions at 3, 6 and 12 months. 

Vendor management allows principals to manage technical, economic and contractual relationships with key suppliers or business partners. Elée supports its clients in the design and execution of their vendor management policies and processes.

We work with CIOs and procurement departments in all stages of a vendor management policy:

• Segmentation of the supplier portfolio and management methods by type of supplier
• Vendor management process
• Setting goals and plans
• Definition and monitoring of performance indicators
• Management of suppliers on a daily basis
• Marketing and communication
• Management of events and meetings between internal stakeholders and suppliers

Software distributors and resellers are at the heart of your licensing strategy. They must be able to provide you with competitive prices and sufficient service. Regularly re-contracting your software distributor is a best practice that organizations should adopt.

Whether you are a large or a small organization, it is essential to have a relationship of trust with your software distributor. A contract that is too old, a lack of products in the catalog, a lack of flexibility when purchasing new software, uncompetitive sales prices, payment terms that are too rigid, and difficult discussions are all signals that should lead you to put out your software distribution contract to tender, or at least renegotiate your contract with your distributor.

The Elée team supports procurement departments throughout the process of creating distributor RFPs. Our team of experts will assist you from validation of needs through to negotiations with distributors.

Collection of existing data and contract analysis

In the first phase, and with a view to analysing existing contracts, our experts carry out technical interviews and gather documentation. The data collected helps our customers to validate their needs and build a complete RFP.

Assistance in drafting specifications

Covering all the needs raised by stakeholders requires a full assessment of the risks associated with software usage upstream. For this, our team will help you collect usage data through your RFP platform and then draft the entire RFP document including the context, your expectations of the first phases, and the selection criteria. Additional documents can also be produced, for example price schedules.

Support during negotiations with resellers

The Elée team performs an internal and external benchmark on pricing and contractual conditions in order to provide you with the best possible solutions to fit your needs. 

IT and procurement departments have to deal with “strategic” negotiations every year. A negotiation is said to be strategic when it meets several characteristics, including high financial stakes, dependence on the solutions of the publisher, an imbalance of power, the absence of alternatives, and an asymmetry of information.

Negotiating and managing long-term relationships with publishers and cloud providers requires skills and expertise to keep pace with technological innovations and commercial pressure from suppliers.

Definition of needs

The negotiator needs to have a precise vision of the real ways in which the company uses the products covered by the contract. Are your IT teams able to provide you with precise data on the usage of licenses and subscriptions, as well as their future needs?

Definition of a financial target

Before any negotiation, it is imperative to have a reasonable financial target in mind. Do you have a good view of market prices in relation to the type and volume of the products covered by the contract you wish to negotiate?

Preparation of alternatives

Before any negotiation, it is necessary to prepare alternatives in the event of disagreement with the publisher or failure to reach the initial target. Have you prepared your "Best Alternative to a Negotiated Agreement" (BATNA)? How many negotiation scenarios have you considered?

Dependence on the publisher

Some technologies are embedded in our information systems, and it would be unthinkable to deprive the company of these technologies. What levers do you have to try to rebalance the negotiation? What arguments will the publisher respond to, despite their strong position?

Our expertise allows us to support companies throughout the negotiation process, from preparation to contracting with suppliers, by providing added value at each step and keys to optimize your acquisitions both financially and technically. 

Preparation and situational assessment

Renegotiating a contract first requires taking stock of the existing agreement. Have you deployed the products that you have purchased or subscribed to, are you paying competitive prices, and have the contractual terms enabled you to secure the relationship and the costs while providing sufficient flexibility? The quality of the products and services sold by the publisher must also be assessed at the level of the users, operators, and purchasers. 

This first step can last from a few weeks to a few months, depending on the footprint of the supplier in the organization. The report will allow you to have a precise vision of the usage and risks of the products and services to be renewed, and above all to have a formal and objective assessment of your contract and your supplier.

Negotiating strategy

The negotiation strategy includes the objectives of your organization and the different steps to achieve them. Our experts will involve stakeholders in several workstreams to define the components of the strategy: demand plan (need for products and services in the short, medium and long-term), contract, alternative solutions or suppliers, financial (business case for the next 3-6 years), etc. Other aspects not to be overlooked are the timing as well as the roles of each member of the negotiating team.

Negotiation support

Elée’s experts support negotiators throughout discussions with the publisher until contract signature, by analysing the proposals received from the publisher and comparing them with other examples, by explaining the advantages and disadvantages of different proposals, by updating the business case, and by preparing arguments and responses to the publisher’s proposals.