Intellect promote collaborative IT contracts

Recession means that businesses are having to work together, says UK IT industry group

Higgins: businesses must work together

A new guide, published today by UK IT industry body Intellect, provides advice for businesses on how to maximise success in collaborative contracts.

Firms must look towards more collaborative approaches to IT contracts if they are to work well in today's economic climate, the Intellect guide argues.

The guide suggests contracts should be modelled on so-called outcome-based agreements (OBAs), where the supplier is contracted to achieve business outcomes working with the customer, which requires more collaborative partnerships.

Traditional contractual agreements that operate on an arms-length supply of technology services or products are becoming more rare in the current economic climate, where every penny counts.

John Higgins, director general at Intellect, said OBAs represent a significant evolutionary step in the contracting process.

"The beauty of this contracting agreement is that it’s not that big a change from what we’re already doing; it’s evolution, not revolution. Now is the time for new thinking to solve old problems," he said.

An important aspect is ensuring the goals of both partners are the same, the report said.

Richard Sykes, chair of Intellect’s OBA Working Group, said the guide is intended to provide a blueprint for such agreements across the public and private sector.

"Intellect will now utilise its key relationships across industry to develop practical means of delivering the agenda we set out in this guide," he said.

The report, A Guide to Outcome-Based Agreements: A better way to do business, is available on Intellect's website:

http://www.intellectuk.org/component/option,com_events/task,view_detail/agid,1239/