Improving Negotiations and Contracting Techniques with Technology Vendors
Ensuring Better Core Banking System Implementation Business Contracts
When a bank decides to select a new core banking system, it is usually because the systems it is using no longer meet commercial or operational goals. For many financial institutions, the path from research and selection to a live implementation of a new system is often long and far from straightforward, with many hurdles and challenges along the way.
One of the most significant challenges during a core banking system project occurs when the relationship between the bank and its software and/or consulting vendors becomes strained, either because of missed deliveries, the discovery of unsuspected complexities or from external competitive or regulatory pressures. This crucial relationship is primarily governed by a complex series of contracts between all the parties involved, which are themselves based on numerous discussions, understandings and agreements reached during the selection, negotiation, and post go-live phases.
This new training workshop from IBS Intelligence, delivers a practical, step-by-step overview of the factors involved and best practices required to help achieve a ‘good contract' when engaging in a core system selection. By attending this course, which can be delivered flexibly in-house or at a suitable off-site location of your choice, you will learn how to:
- Identify the business objectives of the core renewal process and embody them effectively throughout the entire project contract
- Help ensure the software and services offered are delivered at the cheapest achievable cost as benchmarked against actual market statistics
- Provide for contractual flexibility to allow all parties to respond to changing business and regulatory pressures, whilst still remaining focused on the original business objectives
- Agree realistic deliverables with all parties; there being little point in a bank forcing vendors to sign contracts which they cannot deliver
- Achieve greater control and a smoother system implementation process throughout.
It is in every bank's (and vendor's) best interest to negotiate and agree the best contract possible, and to maintain continuous financial and operational significance for all key stakeholders involved, with clearly communicated actions, updates and objectives. Attending this new workshop is one step towards achieving this goal.
- Know your vendor. Understand how vendor sales teams, system integrators and consultants are made up, what sales processes they follow and what tactics they may use to secure your business.
- Understand the vendor's sales objectives. Understand where they can be flexible, and where they cannot. Understand topics including revenue recognition, VSOE (Vendor Specific Objective Evidence), custom vs. supported vs. core product.
- Learn how to ensure that your original business objectives persist through the selection process and into the final contract. Understand how to stay true to your original intentions since core vendors base their sales strategy on changing your selection rules, your priorities and your focus on key objectives during a selection process.
- Learn how to align your buying cycle to vendor's sales cycles. Gain insight into the importance of setting proper expectations with your vendors in each phase of the selection process.
- Discover how legal terms and business terms can differ. Learn how to represent your business requirements in lawyer-friendly terms, learn when and when not to engage your internal or external legal teams in the process.
- Discover some of the common misunderstandings and pitfalls in contract negotiations. Find out the importance of making a contract which is both focused and flexible.
- Gain an introduction to new innovative approaches to contracts including the “Living Contract”TM methodology pioneered by Negotius. Find out how new methods and tools can help you to achieve successful business outcomes from your core renewal projects.
For more information or to speak with our training team about your requirements please call us on
+44(0) 1303 262 636 or email Jon Raeside at firstname.lastname@example.org
Watch our free 30 minute video webinar:
|A free 30 minute video webinar outlining the issues to consider when negotiating and contracting with technology vendors can be viewed to the right. (Audio via your computer speakers or headset). |
Depth of Experience
Your IBS Intelligence training workshop is delivered by some of the most experienced and respected figures in the sector.
IBS Intelligence draws on a wealth of successful system selection and implementation projects for clients ranging from tier one to tier four banks, vendors and consultants across a wide range of geographies. In over 20 years, we have had 100% satisfaction with all our consultancy clients. Indeed, we pride ourselves on exceeding customer expectations. With experience of highly strategic work, including overall systems strategy and architecture reviews to a broad number of selections, we have established proven selection and market research templates and methodologies, including scoring models.
If you are engaging in a core banking system selection, we would also recommend the following:
- Provides a practical, step-by-step guide to selecting banking systems
- Shares the lessons learned from IBS Intelligence research and real-life implementation case studies
- Emphasizes the critical importance of focusing on the 'people aspects' which typically de-rail these projects
- Provides simple tools and ideas to make the process less painful and improve your prospects of a successful systems selection.
Related research from IBS Intelligence
| ||Core Banking Systems Case Studies >>|
Delivering 62+ real-life system implementations, each case study draws on the personal experiences of top-tier executives, IT directors, project co-ordinators and managers from financial institutions around the world. Three additional case studies are added every quarter.
| ||Back Office Systems & Suppliers Guide Online >>|
Featuring 101 international suppliers and over 140 systems. Each in-depth profile provides company status, history, strategy, system functionality and specifications, strengths and weaknesses, plus extensive customer lists broken down by country.
| ||Core Banking Systems Benchmark 2011 >>|
88 banks across 53 countries reveal their system replacement plans and business priorities.
Order IBS publications in our Research Shop
- Research Shop
- IBS Journal
- Banking Systems Market Survey 2012/13
- Back Office Systems Guide
- Banking Definitions Guide
- Core Banking Systems Cost Benchmark 2012
- Core Banking Systems Benchmark 2011
- Core Banking Systems Case Studies
- How To Select & Implement A Universal Banking System
- Islamic Banking Systems Guide
- Market Dynamics Report 2012
- Middle East Banking Systems
- Payments Systems Guide
- Retail Banking Systems
- Risk Management Systems Guide
- Treasury/Capital Markets Systems
- Wealth Management Systems