The second half of the year is traditionally a period when many IT contracts expire – think software licenses, telecom services, cloud solutions, connectivity, security and more.
Yet we regularly see that organizations only take action shortly before the end. The result? Unnecessary extensions, limited room for negotiation or contract terms that no longer fit today's needs.
That is why we would like to share five practical tips to prepare your organization in time for expiring IT contracts.
✅ 1. Map out all expiring contracts in a timely manner
Do you have an up-to-date overview of all your IT contracts, including end dates, notice periods and renewal conditions? Think beyond software: mobile telephony, VOIP, cloud, security and connectivity also deserve attention.
Ideally start 90 to 120 days before expiration. For complex or long-term contracts even earlier.
✅ 2. Check whether the use still fits in with practice
Over time, your organization changes: users, locations, work formats, and technology needs shift. Are all licenses, modules, or services still being used optimally?
Combine invoice data, usage statistics and key user conversations to gain insight.
✅ 3. Take the initiative in the renegotiation
Don't wait for a new proposal from your supplier. This is often aimed at maintaining existing margins and structures. By proactively developing scenarios yourself, you strengthen your negotiating position.
Map out market-conform rates and conditions – and negotiate based on content and data.
✅ 4. Explore alternatives, even if you want to stay with the same supplier
A good market research increases your negotiating power. Even if you decide to stay with your current supplier, it often leads to better conditions.
Compare suppliers on price, scalability, flexibility, service levels and contract duration.
✅ 5. Be aware of common pitfalls
Automatic renewals, custom terms without communication, oversizing and exit barriers are common risks – and often only become apparent after renewal.
Have your contracts reviewed in a timely manner by an independent party – someone without commercial interests in suppliers or resellers.
And finally
Expiring IT contracts are not administrative details. They are an opportunity to strategically recalibrate your IT landscape, reduce costs and decrease dependencies.
Would you like to know where there is room for your organization?
BeSharp Experts is happy to support you with objective analyses, benchmarks and negotiation strategies. Independent, sharp and completely in your interest.
Together we make IT contracts fairer, more transparent and better.
