Service strategy before signing a contract

Many IT outsourcing companies contract equipment supplies, IT support services,  business IT support, network support, network services, server maintenance, It service provider to Axentel because of the vast experience in TPM vendor deals.

After all negotiations has been made between vendors and customers, a vendor-customer agreement also called contract-paper has to be duly drawn-up and signed by both parties (the vendor and the customer requesting the vendor services). The contract is therefore the written agreement drawn up by vendors, and approved by the customer. The contract should clearly state all agreed deals and all agreed conditions for transactions or partnership.

Verbal contracts for Third Party Maintenance (TPM) providers/vendor services are legally acceptable but when issues happens, or cases of future disagreement, verbal contracts becomes hard to depend neither  will it be defendable in-court. There will be no evidence to present before the court for right judgement. Therefore written contract document is preferred to verbal contract for the safety of both vendors and customers. The contract covers all future agreed deals and vendor services to be rendered, terms and conditions for partnership/operations are stated clearly. Both the vendor and the customer signing of the drawn-up document legally mean that both parties agree to all that is written in the document. Once the contract is signed by both parties, there will be no more room for any change of mind; unless the conditions sated in the contract are followed. The contract signed becomes the operation guide for both the vendor and customer.

Therefore before you sign any contract as a vendor or customer, make sure that you understand all service strategies for operations.  Here are few basic things that your contract deal should cover.

Your contract should cover:

  • Detailed price for products/services purchases
  • Payment terms and models
  • Product/service delivery schedules and conditions
  • A clause or condition stating that the vendor has ownership right to goods/equipment supplies until customer or buyer make full payment for goods/equipment
  • A clause or condition stating vendor liability on supplied goods/equipment, putting into account the buyer or customer’s legal rights.
  • The agreed terms and conditions for transaction should be included.
  • The contract should also cover detailed after-sale service deals on equipment supply, such as maintenance warrantees, what will be done when equipment supplied or services does not work the way they should, in cases of damage on supply, parts failure during use, future discount on repairs or equipment maintenance after warrantee ends and so on.
  • Contract exit procedures and dispute resolution channels should be stated in the contract also
  • Read up on the equipment end of life (EOL), the manufacturer End of service (EOS) period, mean-time between failures MTBF for the equipment and the vendors deal about product EOL, EOS and MTBF. Put the vendors promised actions and EOL/EOS policy in that regards in the contract deal.

When drawing up the contract deal, a legal advice and backing should be used (involve a lawyer).

Most time the vendor takes most legal responsibilities to keep the customers safe in a contract deal. Therefore as buyer or Third Party Maintenance (TPM) vendor customer, the type of contract that you should go for is the type to protects your interest and places legal supply responsibility on the supplier or vendor.

Any promised service offer or discount percentage offer by a vendor plus assurances on equipment supply should be in writing and duly signed by both parties. Make sure that you keep a copy of all signed contract and transact document.


Buyers cannot hold vendors or sellers responsible for anything that is not included in a contract deal. So, when drawing up any contract deal, take you time to consult with the vendor, independent advisors, and legal personnel, to ensure that the contract covers all unforeseen eventualities. The responsibility of any omissions or errors in the contract deal will be borne by the affected party.

Weigh the contract deal and compare it with your business practices, see if it will pay your business in the short and long term, if yes then consider signing the contract deal.

The kind of vendor of TPM provider to sign contract with is the type that has third party maintenance (TPM) experience in the business and has manufacturing partners that supplies quality product. Axentel TPM and vendor services, has experience in TPM services, presence in most cities across Asia and partners to provide quality and large warehouse of equipment in stock. This makes Axentel the most reliable service partner to sign supply and maintenance contract with. Axentel are also able to provide most EOL/EOS equipements, IT support services, network maintenance etc and still able to provide support to their customer even though the principle had stopped manufacturing. Axentel know how to take advantage of “first come first serve” (FCFS) offers by manufacturers in a way to profit customers for future service satisfaction.

End of Life (EOL) Transitioning for Products or Equipment 

As business IT support and Network technology need evolves, Axentel evolves with it, more experience are gained on daily basis on how best to meet customers unique needs at different stages. In cases when some customers are still making use of equipment or products that are not longer being sold or manufactured, Axentel know how to get compactable parts when needed and when to suggest discontinuation of use, then negotiate supply of new products that has update functionality at rate and ways that will be of optimum profit to the customers.

Such equipment or product End of life (EOL) transitions can be made so easy with the help of TPM providers like Axentel.

Included in Axentel TPM package for EOL transitions are: supply and support handling of equipment and listed guidelines of actions for products or equipment approaching EOL phase.

End of Service or Support (EOS)

When network products update or operation equipment parts for repairs are no longer available, then such product has reached end of service phase. EOS is usually 5years of more after End of sale.  Axentel has Third Party maintenance (TPM) policy for such product support.

End of Sale

Equipment or product end of sale is reached when such product or equipment can no longer be purchased due to stop in production. In most cases, revised versions for such products are manufactured instead of the old one. Axentel has services and migration strategy in place for products that are at end of sale phase. Service/ migration strategy for such products are usually put in place before signing a contract deals signed with customers. Where required, such strategy can be included in the contract deals.

Axentel usually sends notification to customers few months before products in their care reaches end of sale time.

Customers who engage third party maintenance (TPM) vendor services enjoy protections form EOL/EOS hassles on product purchase on maintenance.

Therefore before signing any contract, customers are advised to consider service and support for all products / service purchase. Also ask your questions regarding EOL or EOS support from TPM vendors.

Newton Poole