What to Look for in IT Contracts

In the corporate world, businesses are surrounded by IT contracts. As everything moves to digital platforms, apps, and online, it is essential to know what to watch out for when reviewing IT contracts.

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First, make sure that your data is protected. Your contract should include adequate confidentiality provisions. Nondisclosure agreements are not sufficient to protect private data.

Depending on the type of IT contract and the nature of your business, you might want to include provisions that detail requirements for:

  • Encryption
  • Password requirements
  • Background checks
  • Breach responses
  • Audits and audit logs

Next, look for costly and unnecessary fees. For example, are you paying for maintenance and support that you might not need? This may be negotiable.

You also want to be very aware of exceptions to any provisions that offer you protections. This includes their indemnity to provide intellectual property. The IT vendor should be ensuring that they have all the rights to provide the IT you need. It could be detrimental to your business if you are made aware of a copyright infringement within their software down the line, if your contract doesn’t account for that situation.

Finally, make sure the contract has details regarding what you expect the technology to actually do for you. Clearly written contracts are essential for enforcement.

We help our clients negotiate IT contracts to protect their current and future interests. As always, we recommend that you consult with an attorney regarding your contracts to ensure they are compliant with laws and regulations.

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