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Contracts clicktracts and shaketracts! It is an inevitable fact that with the advent of digital business initiatives, new contracting approaches are evolving. Nowadays, traditional outsourcing contract approaches are proving to be inadequate to deliver the speed and innovation provided by businesses.

• By Naveen Joshi • 5:57 am

Hence, these traditional approaches are fading away. Service providers are now recognizing the changing demands and have started researching and reworking on their approaches. This research has suggested two new approaches: clicktracts and shaketracts.

The terms “clicktracts” and “shaketracts” are not defined terms. But, these terms are used to describe different types of contracts. They elucidate two significant aspects of contracting which are efficient standards and flexible customizations.

In this post, we present you detail understanding of these newly emerged terms.

1.    Clicktracts

Clicktracts include binding agreements between organizations and their service or solution providers that get signed by clicking an “I accept” button in an online store. With the advent of cloud services entering market, enterprises and organizations are discussing the possibilities of signing contracts online. This includes clicking an “I accept” button on a web portal. Clicktracts have already become a reality. Several virtual machines, memory configurations, complete software packages like Microsoft Office 3653 can be now purchased with a click.

Another example of clicktract use is when utilizing crowdsourcing. A crowdsourcing service includes a specific process having a sequential number of steps. You have to follow these steps to get your work done. The buyer has to sign up, post his work and agree to the terms and conditions. These T&Cs include standard metrics, but in the next steps, buyers can pick extra options, adding resources such as a coach, project management support or additional testing. A clicktract is not always a simple selection screen with all the options. It can be a bit more complex. It can include providing buyers with a selection process to identify all the services, add-ons, metrics and the pricing model.

Some key features of a clicktract are:

  • It can apply selection mechanisms widely found in online Web stores.
  • It promotes speed and commoditization.

2.    Shaketracts

Shaketracts include agreements that can be signed extremely fast, based on a very narrow focus. This narrow focus will mainly concentrate on few clauses or per-loop agreements. Shaketracts are different from clicktracts as they allow negotiation and customization. Clicktracts focuses on commoditized service market, while shaketracts focuses on providing more customized services. Shaketracts in no way will slow down the contracting process; in fact, Gartner says that it will rather support the speed of innovation. This will prove as a remedy for the weak aspects of traditional contracts today.

Some key features of shaketracts are:

  • It supports the demand of combining per-loop T&Cs with per loop metrics and a per-loop pricing mechanism.
  • It allows you to fulfil the quality and time constraints in contracting.

In this way, using these two concepts in contracting, your innovative projects can start right away, without weeks of negotiations.

Liked this article? Take a look at our interesting blogs about IT service contracting.

 

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