FAQs Contract Negotiation Sourcing/Contract Negotiation What are some of the typical problems companies encounter when entering a negotiation cycle?
What are some of the typical problems companies encounter when entering a negotiation cycle?
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- Friday, 21 November 2008
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Specific issues can vary from company to company and from negotiation to negotiation. But many of the common problems experienced when sourcing new carrier contracts include:
- Lack of preparation time. Many companies are unable to accurately evaluate their current traffic and usage because they don’t have enough time or people to commit to performing what is generally a time consuming, manual audit. Yet the more complex the negotiation, the more important it is to have a clear picture of current spend and present an accurate demand set.
- Lack of rate information. Going into a negotiation without a good sense of what the carriers are charging others for the same products and services is a good way to ensure you’ll overpay.
- Lack of specialty knowledge in the entire telecom RFP process. If your organization is only doing a negotiation once every two or three years, your organization might be lacking the required level of knowledge necessary to negotiate world-class contracts.
- Lack of knowledge on negotiating newest technologies. If you’re not an expert on the latest and greatest (say, MPLS for example) you have no way of knowing if the decisions to change/upgrade/switch will save or cost you money.
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