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Why It’s Critical to Align Technology Contract Governance and ITIL

A successful ITIL process must take your business technology vendor contracts into account.

Information Technology Infrastructure Library (ITIL) is a well-known process which is essential for aligning technology with business strategy.

It develops a framework of best practices meant to create a stable IT environment which can support your strategy both now and as the business grows.

However, what businesses often fail to consider when building their ITIL process is the impact their vendor contracts and vendor services have on their overall strategy.

You may have heard the phrase “a failure to plan is a plan to fail.” The failure to fold contract governance into your ITIL process leaves you plan incomplete and risks major, destabilizing consequences down the road.

How Does Business Technology Contract Governance Intersect with ITIL?

Contract governance is the process, in conjunction with ITIL, that creates alignment between contracts and your overall business process. It creates agreed-upon outcomes between suppliers and customers.

Some questions to consider when aligning your ITIL and contract governance processes are:

  • Do the current contracts support our long-term strategy?

  • Do the contracts commit our vendors/suppliers to do what is expected from them?

  • Is there flexibility to modify the contract based upon changes to the business environment?

  • Do we have a lifecycle process to review the contracts?

How Does Contract Governance Enhance ITIL?

In summary, contract governance is important to ITIL because it allows companies to have:

  • Visibility into current contracts

  • Flexibility in contract agreements

  • Ongoing assessment and reassessment of supplier contract and terms

  • Renegotiation of terms

  • Clarity on costs, timelines, services, and party responsibilities

  • Strong relations with suppliers

  • Higher productivity

Each of these aspects ensures that the supplier is fulfilling their contractual responsibilities to the customer. Contract governance mitigates the risks involved when bringing in a third-party supplier.

On our next blog, we’ll cover how to build a contract governance process.

Questions? Serviam specializes in coming alongside expert teams like yours to guide you in business technology strategy development. Schedule a consultation with us here to learn more about contract governance for business IT.

Get the service and guidance your business deserves for critical business voice, data, internet, and cloud services. Serviam Telecom and IT Vendor Management

Serviam’s process is simple.

  1. We listen and assess your unique telecom situation.

  2. We guide you through a custom roadmap to better technological and contractual solutions.

  3. We manage your transition so you have the best possible experience.

  4. We stay with you to make sure your vendors continue to support your ever-changing business requirements.

Our Telecom and IT Vendor Management service goes far beyond managing costs or negotiating contracts. We guide you through a holistic, future-forward telecom strategy for your company and provide you with a long-term partner who manages your vendor relationships so you can focus on the road ahead.

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