Executive Summary (This is a document excerpt)

As firms increase their usage of software-as-a-service (SaaS) applications and deploy SaaS for more mission-critical functions, they must be more prudent about what to put in their contracts. Sourcing departments should take the initiative to help with best practices for negotiating the growing numbers of SaaS contracts. Key considerations include data ownership, uptime and performance expectations, backup and recovery, and support. Sourcing departments should also take responsibility for keeping repositories of contracts and tracking application usage so that they can be more successful in future negotiations.

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