With a Wink and a Nod – How NOT to Squander Your Leverage
Every contract negotiation involves a balance of leverage between the parties. In the context of telecommunications negotiations, that balance almost always favors the vendor, regardless of how much money the customer is bringing to the table. We could debate whether this has something to do with the lack of robust competition, the cost in time, dollars and human capital required to migrate a network between vendors, or the fact that telecommunications is considered a cost center for most clients, so that achieving quick savings generally trumps concerns regarding long-term risks and liabilities. Whatever the reason, creating, or at least maintaining, leverage can make all the difference in reaching a successful result, and yet it is all too easy to lose.