Yet negotiating contracts with IT partners--and managing the resulting relationships--is a proficiency that's multiplying in importance for IT leaders as outside providers deliver more and more of the IT solutions portfolio. "There are several key skills all individuals in IT need to take with them to advance in their career, and contract negotiations is absolutely one of them," says Mark Carbrey, CIO of Medford, Mass.-based Cross Country Automotive Services and a group mentor in the leadership development program of the . "The technology world has become so very complex in terms of the web of suppliers and partners that you must embrace to succeed."
Providing this career-enhancing opportunity--without taking unnecessary risk--takes some care both on the part of the CIO providing it and the IT manager taking advantage of it
Building Toward a Solo Shot
Carbrey has very clear ideas about what he wants from IT contract negotiations--a well-defined process, clearly defined requirements, and--ultimately--a true business partnership. To instill those vendor negotiation values in his managers, he employs a team-based approach. His best and brightest will get numerous opportunities to serve on a five person review team negotiating one of Cross Country IT's many contracts.
After they've absorbed the essentials--what it means to treat a vendor like a partner, how to define requirements in an ever-changing business context--Carbrey gives his promising performers a shot to take over, but never on the most critical contracts. Instead he looks for new deals or renewals that are lower risk--say, a conference call provider, or new supplier for printer maintenance. "We may sacrifice a little bit of money or performance [if the negotiations don't go well] but we won't put the company at risk." It's a win-win--it takes something off of the CIO's plate and gives his top talent more negotiating experience.