IT purchaser

As purchaser you know like no other that negotiations are done in advance. Definitely where it concerns important “side-issues” as an escrow arrangement. But not all escrow arrangements are identical. This is why it is wise to specify your escrow requirements.

3-Party Escrow Arrangement

With your “own” (one-on-one) escrow arrangement you will have maximum flexibility. A proper escrow arrangement is “neutral” and does not require an active participation of the software supplier or user. It is our job to monitor the quality and progress of each escrow arrangement.

In practice setting up an escrow arrangement does not start until implementation of the application is completed. When the development cycle takes some time - for example longer than 3 months - it is prudent to close the escrow arrangement and have the software in development delivered to the escrow agent at regular intervals. On one end the software supplier becomes familiar with our processes and on the other hand the software under development is secured.

Escrow Frame Agreement

Suppliers of standard software increasingly choose to close a frame agreement with an escrow provider (one-to-many). All licensees are automatically beneficiary of the arrangement or can easily sign on to the escrow arrangement. If such an arrangement is neutral and of good quality this is an excellent and efficient alternative. Always ask the escrow provider (directly) for a (written) confirmation of registration. Next to this check the arrangement for the following:

• Are the release conditions reasonable and do they provide enough security in case of a calamity
• Does it concern an active escrow arrangement with frequent updates and verification
• As beneficiary do you have the option to effect additional services
• Is the arrangement cost effective in relationship to the service provided.

Recommendation: ask Escrow4all for an objective second opinion!

Downloads

• Concept 3 party agreement PDF
• Concept Frame Agreement PDF
• Company brochure PDF