Gartner Research

Merger, Acquisition, Divestiture and Outsourcing Will Increase Costs If Software License Transfers Have Not Been Negotiated Into Contracts

Published: 08 May 2014

ID: G00261667

Analyst(s): Rob Wilkes

Summary

Software buyers expose their organizations to substantial risk and cost by failing to negotiate a license transfer or reassignment clause into their software license agreements to cover M&As, divestitures or outsourcing. This can deprive them of IT budget needed for integration or consolidation.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • IT Procurement Professionals That Negotiate the Right to Reassign in All New Software Contracts Save Considerable Time and Risk to Budget When They Restructure
  • Action to Be Taken by IT Procurement Professionals That Have No Contractually Agreed Assignment Provisions
  • Best Practices for Exercising the Right of Assignment

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