Software Contract Negotiation

Importance of negotiating software contracts with vendors

Critical software applications are at the operational heart of every modern organisation. Whether they run financial transactions, distribution, point of sale, or work-order scheduling, they share one commonality – their value to business operations.

Anyone can snap a photo but it takes training to become a professional photographer. The same is true with buying software – while anyone can buy it, only professionals know how to negotiate the best business outcomes.

Worse still, when it comes to negotiations and achieving best business outcomes, organisations focus on the wrong places (usually one-off, upfront discounts) that often sets them back on more technical measures.

When it’s time to replace or upgrade a business-critical system, organisations go to market, but are often overwhelmed and confused by the myriad of options and complications within a contract.

The costs and complexities of effectively managing software and licensing increases annually as technologies are frequently updated and superseded. The decision to modify technology investments is not one to be taken lightly.

Why Invictus Partners Software Contract Negotiation Consulting?

Through 30+ years of industry and negotiation experience, the Invictus Partners team has developed a clear understanding of the procurement and negotiation process. No matter the decision point, line item, or contractual term, we understand how these can develop into significant cost and operational restrictions for businesses.

We know how to identify and avoid these costs and risks, providing clients with value and convenience. We understand where the common cost blow-out traps lie and how to cut through the complications to offer you clarity.

We work alongside procurement, vendor, and project teams, and operating seamlessly as a resource for guidance and support. Given the risks and potential cost blow outs associated with these large ERP type projects, Invictus Partners’ service ensures you get the best value from your investments and negotiating position.

To truly understand software negotiations, you need to think like the vendor and look past the glossy promises and over-technicalities to understand what you have, what you need, and what’s best suited for your business.

The Invictus team has over 200 years combined experience working inside some of the world’s largest software vendors – all here to guide you through the process of software use, acquisition, and negotiation.

Software Contract Negotiation Process


Invictus Partners provides clients with the greatest value, efficiency, and optimisation through our proven methodology:

Software Contract Evaluation and Licensing Review

  • Build an understanding of your current footprint,
    • what you have
    • how much you’re using
    • anything being underutilised
  • Build a baseline to inform negotiations
  • Review existing and proposed contracts

Recommendations and Advisory

  • Understand future state requirements
  • Understand growth, operational or aspirational targets
  • Identify gaps in contractual terms or flexibility
  • Identify opportunities for additional terms, models, or pricing structures

Software Vendor Selection Advisory

  • Understand which vendor best meets your needs
  • Discover the licensing model or contract aligned with your goals

Software Negotiation

  • Formulate negotiation strategies and tactics
  • Benchmark commercial constructs
  • Actively participate in vendor-negotiation meetings

Contact Us About IT Software Contract Negotiation