A company is anxious to sign a 3-year software operation contract for an ERP (Enterprise Resource Planning) software package. The company has already acquired experience in the provision of software operation services for the ERP package. The multinational organization suggests paying a lump sum for user support, corrective and adaptive maintenance tasks, and a separate payment for functional improvements, based on the characteristics of each request. The pressure from the Sales Department to immediately sign the contract left little time to prepare a proposal, and practically no time for a contract review. What risks are entailed by neglecting to hold a contract review?
A company is anxious to sign a 3-year software operation contract for an ERP (Enterprise Resource Planning) software package. The company has already acquired experience in the provision of software operation services for the ERP package. The multinational organization suggests paying a lump sum for user support, corrective and adaptive maintenance tasks, and a separate payment for functional improvements, based on the characteristics of each request. The pressure from the Sales Department to immediately sign the contract left little time to prepare a proposal, and practically no time for a contract review. What risks are entailed by neglecting to hold a contract review?
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.3SA
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A company is anxious to sign a 3-year software operation contract for an ERP (Enterprise Resource Planning) software package. The company has already acquired experience in the provision of software operation services for the ERP package. The multinational organization suggests paying a lump sum for user support, corrective and adaptive maintenance tasks, and a separate payment for functional improvements, based on the characteristics of each request. The pressure from the Sales Department to immediately sign the contract left little time to prepare a proposal, and practically no time for a contract review. What risks are entailed by neglecting to hold a contract review?
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