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.
- 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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