Organisations are increasingly transforming their technology and telecommunications estates so as to increase business efficiency, comply with regulatory change, or to keep step with technological innovation. As service providers look to differentiate themselves in an increasingly commoditised market, they will offer additional services that promise material additional value. Service provider agreements will include value propositions such as:
Some of these additional benefits are becoming less tangible, and therefore harder to quantify and enforce. An organisation must therefore ensure that these additional benefits are in fact of value and if they are, delivered in accordance with the expectations of the business case.
Many of the promised benefits will fail to materialise if not contracted to correctly or actively managed throughout the contract lifecycle. In fact, many service provider contracts rely on this and include clauses designed to recoup this added value. As such, customers need to understand and negotiate the commercial levers within their agreement to ensure this value is realised. Key questions that executives should ask their commercial and contracting teams include:
Failure to effectively contract to and manage these areas of an agreement can result in a punitive arrangement that fails to support a customers’ business nor provide value for money.
Our Commercial Assurance specialists have many years’ experience on both the buy side and sell side of telecoms negotiations. We work with clients through strategy, scoping and service provider selection and provide independent challenge and scrutiny during commercial and contractual negotiations. Our approach combines industry experience, best practice and commercial assurance rigour, and our specialists will work hand in hand with the client service delivery teams, procurement and legal advisors with a view to implementing a contract that maximises client value.
Partner – Commercial Assurance National Lead, PwC United Kingdom
Tel: +44 (0)7718 928344
Richard E Gott
Partner, PwC United Kingdom
Tel: +44 (0)7881 612572
Senior Manager – Commercial Assurance, PwC United Kingdom
Tel: +44 (0)7725 445892
Senior Manager, Commercial Assurance, PwC United Kingdom
Tel: +44 (0)7540 859 164