IT contracts: What vendors expect

previous page:What clients expect...What vendors expect of clientsClients seem to be weakest in the area ofcompensation.

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What clients expect...

What vendors expect of clients
Clients seem to be weakest in the area of compensation. Vendors complain that clients are often unwilling to pay fair compensation.


"Clients are often not as good with their compensation as vendors expect them to be. This is because most people find it easier to pay for products than for services. We can see and feel the products, but often, the services get overlooked. In most IT contracts, it is the same - the final product is what we see most tangibly, but labor costs usually form the bulk of the knowledge work, and so the service component is what actually makes the difference.

There must be a mindset shift for us to recognize the value of services and pay for them."

- Asst professor Christine Koh

To succeed, clients must be actively involved in the project, making project decisions as well, and not just providing fast responses to vendor requests.

But many of the clients take a hands-off attitude because they believe that they are paying the vendors to solve all the problems and make all the decisions.

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