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Thursday, December 6, 2012

Extreme Price Negotiation Doesn't Always Mean Proper Solution Delivery

System Security, Time and Staff monitoring are challenging element in the IT ecosystem. The change is evident and customers feel the need of a resourceful solution or a sound piece of advice for strategic management of their IT environments. This altered the mechanics of businesses operations and they way they evolved their services arm to deliver better customer experience.

Securing partnerships with leading brands is how they manage to support organizations in creating a scalable, reliable and customized security solution. For such a critical deployment, customers entail best of breed technology in a professional manner.

The factor that puts both the service provider and the client is the 'Price Negotiation'? Or you may call extreme negotiation, which bother companies from cost perspective for development of critical IT environments.

Negotiation mentality of customers in Middle East is heterogeneous and cannot be generalized. What is observed is the growing trend of exaggeration on pricing structure. Customers have a notion and mind-set that service provider might be be-fooling them on the cost side and they may end up paying over the budget. The pressure of price negotiation makes the service provider amend their servicing policies and get driven by their sales objectives - not in line with customer needs.

Most of the customers find it hard to comprehend and leave no scope for negotiation. They don’t understand the scope of project, the effort and time consumption, planning, designing, integration, and post-support which costs money to the service provider.

The need is to see what the project scope is and negotiate accordingly. The customers must limit themselves in terms of price negotiation. Market is competitive and it’s quite easy to find a service provider at a price tag set by the customer himself. However, high price negotiation doesn't always mean a right solution.

Finding the middle ground on total costs perhaps could be a better idea. In such a case, the output will surely align expectation and alleviate all possibilities of bad execution and bad results.



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