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IT Outsourcing Contracts: A Legal and Practical Guide by Jimmy Desai

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Chapter 3. Agreeing Points of Principle

This chapter deals with the essential stage of pinning your IT supplier(s) down to some ‘in principle’ initial commitments.

This is essential at the early stage of discussions, so that you successfully avoid any unwelcome surprises as the deal progresses. The process takes the form of agreeing key terms.

Your IT supplier(s) will need to agree to these key terms in principle, in writing and before detailed negotiations begin. If you do this, you will have in place a framework from which you can take comfort that contract negotiations are less likely to be a waste of time and money.

Why agreeing key terms matters

As the customer, you can find yourself in a dangerous position if you do not agree some key terms ...

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