For Sourcing & Vendor Management Professionals

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	March 17, 2009 Inquiry Spotlight: Contract Negotiations by Liz Herbert with Christine Ferrusi Ross, Sean Galvin	Average: 3  (6 ratings)

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Executive Summary

In the current economic environment having a solid contract is more important than ever. Forrester clients are recognizing the importance of having meaningful service-level agreements (SLAs) and achieving cost savings through effective contract negotiations. An examination of the inquiries that we've received over the past year shows that clients are interested in negotiation best practices, well-crafted SLAs, and pricing trends. Sourcing professionals should make sure that they thoroughly research and understand their provider(s) or potential provider(s) before entering into negotiations. They should validate rates they are quoted and should ensure that the contract protects them from provider instability through meaningful and enforceable SLAs.

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