Contracts are becoming more predictable
The tech industry is known for its fast-paced and ever-changing nature. As a result, contracts and negotiations in tech have historically been unpredictable and complex. However, in recent years, a trend has emerged where contracts and negotiations in tech are becoming more predictable. This shift is driven by several factors, including the standardization of contract terms and the increased use of technology in negotiations.
Here are some ways that contracts and negotiations in tech are becoming more predictable:
Standardization of Contract Terms As the tech industry has matured, standard contract terms have emerged. Many companies now have standard contracts that they use for specific types of deals, such as licensing agreements or software development agreements. These standard contracts have consistent terms and conditions, making negotiations more straightforward and predictable.
Increased Use of Technology The use of technology in negotiations has made the process more efficient and transparent. The use of contract management systems, while not quite there yet, have helped to streamline some of the analog processes that exist in the contracts process.
Best Practices Industry best practices have also emerged, which have helped standardize the negotiation process.
Precedents As more contracts are signed and disputes are resolved, legal precedents have emerged. These precedents provide guidance on how contract terms and clauses are interpreted in specific situations. ]
Increased Communication In the past, negotiations were often conducted through lawyers or representatives, which could lead to misunderstandings and miscommunications. However, today, many companies encourage direct communication between parties during negotiations.
Contracts and negotiations in tech are becoming more predictable due to the above and the increased efforts by companies to reduce risk. This predictability can often create frustration, but also slowly chip away at unreasonable positions often carried by antiquated templates and company positions. The Farm is capable of helping both vendors and customers throughout these negotiations by having a pulse on the industry which in turn allows for the streamlining of deals.