Gartner Research

A Checklist for Minimizing the Risks of Global Procurement Contracts

Published: 27 March 2012

ID: G00217307

Analyst(s): Stewart Buchanan , Guriq Sedha

Summary

Multinational companies are keen to maximize the value and minimize the potential risk of global contracts. IT procurement professionals can use this research as a checklist to do both.

Table Of Contents

Analysis

  • Strategic
    • Can Cultural or Organizational Differences Be Overcome to Make Global Procurement Possible?
  • Legal
    • Can the Terms of a Global Master Agreement Be Enforced in Other Legal Jurisdictions?
    • Are Global Vendor Contracts, Subcontracts and License Agreements Valid in all Locations Under Local Law?
  • Financial
    • Is the Global Price Better Than Local Pricing After Currency Conversion and Local Uplifts?
    • Who Completes the Necessary Asset Transfers, Chargeback or Billing to the Local Legal Entity?
    • Is the Vendor Providing Incentives to Local Delivery Teams to Meet Contract Terms and Service Levels?
    • Have all Tax Implications Been Accounted for When Transferring Assets Between Different Countries or U.S. States?
  • Fulfillment and Service Levels
    • Does the Global Vendor Accept Full Responsibility for Local Fulfillment and Local Invoicing?
    • Can the Vendor Protect Us From Unforeseen Risks and Costs in Local Invoices?
    • Can You Manage the Contract Without In-House Expertise?

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