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ISSUES & CHALLENGES IN ICT AGREEMENTS FROM LEGAL PERSPECTIVES

INTRODUCTION
COMMON ICT AGREEMENTS BROAD SCOPES IT Procurement Software Licensing IT Services Outsourcing

IT Procurement - Introduction
Objective Of Procurement Is The Identification Of IT Solution To Meet Business Needs It is therefore important that in any IT procurement activities:

your requirements have been correctly specified in consultation with users ensure that providers understand what you want monitor progress and any changes in requirements check that the delivered system meets business needs

IT Procurement Key Legal Issues

the contract deliverables the specification for the deliverables implementation plan

IT Procurement Key Legal Issues

performance and service standards Clients responsibilities project management roles

IT Procurement Key Legal Issues

Acceptance procedures confidentiality, intellectual property and liabilities the consequences and remedies for both parties of default by the other

Software Licensing - Introduction


Software is playing an increasingly critical role in the success of businesses Software used in businesses must therefore be:

Fully supportive of business operations Both genuine (not counterfeit or otherwise illegal) and properly licensed Managed effectively

Software Licensing Key Legal Issues


The major objective of a Software Licensing Agreement is to provide the licensee an unencumbered right to use the software while retaining the rights of ownership with the licensor

identify who is the owner of the software and what rights to the software they retain identify who is the licensee and what rights to the software that the licensor grants to them set out the rights and obligations of both parties and procedures for the management of the licence

Software Licensing Key Legal Issues

Managing the Following Risks in Software Licensing


Failure to meet business requirements Disruption to work Unavailability of, unauthorised access to or damage to data Legal action or loss of reputation due to unauthorised use of items of software.

Software Licensing Key Legal Issues

Licensing of Software

Commercial Off-the-shelf Bespoke or Customised Software

Installation Support & Maintenance Managing the Use of Software by User

IT Outsourcing Introduction
The major objective in IT outsourcing services is the achievement of delivery of specified services at an agreed cost. To achieve this the following key areas are critical:

Service specification Service levels Contract Administration

IT Outsourcing Key Legal Issues

Outsourcing Services Specifications


Scope of IT Outsourcing Maintenance services associated with planned changes to the system, hardware upgrades, software upgrades etc Staffing and management of the help desk and associated support services Staff training Consulting services

IT Outsourcing Key Legal Issues

Service Levels
Measures of successful service delivery Fault reporting and escalation (who will the problem be escalated to, and how will it be resolved when the agreed service levels are not met?) The impact on the business if services are not provided to the stated and agreed service levels

IT Outsourcing Key Legal Issues

Contract Administration

Roles and responsibilities of client and service provider Allocation of risks between client and service provider Change Requests/Orders Pricing of Services Intellectual Property Issues Transition following Expiration/Termination of Outsourcing Services

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