Gartner Research

Use These 10 Contracting Steps to Dramatically Reduce Your Application Implementation Project Overruns

Published: 01 November 2017

ID: G00336462

Analyst(s): Jim Longwood , Alan Stanley


One-third of all application implementation projects are late or overbudget. Sourcing and vendor management leaders should follow these 10 steps when contracting with service providers to significantly reduce cost overruns and delays in standard (nonagile) projects.

Table Of Contents
  • Key Challenges



  • Step 1: Ask for the Plan That Supports the Estimation Provided
  • Step 2: Break Into Time Blocks/Phases With Deliverables
  • Step 3: Define Acceptance Criteria for Key Deliverables
  • Step 4: Get the Service Provider Resource Plan
  • Step 5: Clarify the Delivery Model and Locations
  • Step 6: Lock In the "A" Team
  • Step 7: Document What Is Expected From the Client
  • Step 8: Clarify Responsibilities
  • Step 9: Incentivize the Service Provider to Take On More Responsibility
  • Step 10: Detail How the Project Closes

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