IT Deals Often Fall Short Of Expectations, Users Say.

CAMBRIDGE (Mass.); UNITED States

Attendees at a conference held by IT consulting firm Cutter Consortium in Cambridge, Massachusetts in May 2004 said IT managers often end up getting less out of technology product and outsourcing contracts than they had hoped for, largely because of the process through which deals are negotiated and carried out. Specific problems cited by IT executives and consultants include a lack of willingness on the part of vendors to go above and beyond the service levels spelled out in contracts, and the challenge of giving workers at IT services and outsourcing firms incentives to conscientiously meet agreed-to terms. Stuart Kliman, a senior consultant at Cutter and a partner at Vantage Partners LLC, said one of the big problems that leads to what he described as contract value leakage is a lack of coordination within technology vendors. Some attendees said developing and maintaining close ties to vendors is a must, especially with outsourcing or IT services contracts. The relationship is the most important thing in an outsourcing deal, said Joseph Imbimbo, vice president of technology operations at Tufts Associated Health Plans Inc.