When CIOs are able to boost spending, one factor makes it a lot easierto take on a predatory role: receptive vendors. As IT spending hasstalled, the vendor community, which a few years back had no problemsselling large, expensive enterprise packages to CIOs flush with funds,is now cutting deals faster than a Big Three automaker. "Vendors aremore willing to be creative and look at alternative ways of achievingthe same objective," says Flowserve's MacDowell. "They're looking fornew and creative ways to get a bigger piece of the ITwallet."

Noll wholeheartedly agrees. "From a pricing perspective, they'rewilling to do almost whatever's necessary to get the business," hesays. Before, says Noll, the menu was à la carte - companies werecharged separately for software licenses, training and consulting, forexample. "Now we can bundle training, license fees and consulting allin one and hold [the vendors] accountable for the success of theproduct," he says. Noll also notes that his vendors areproviding - free of charge - jump-start programs in which they train hisstaff on how to install and configure an application or system and getit up and running in two months.

Rubin reinforces that there's been a sea change in the technologymarketplace. It's a buy-side economy, he says, in which the buyersdon't have an imperative to upgrade. Rubin sees massive discounting oninitial software licensing fees and deals on hardware and storage, andalso notes that there's a move away from fixed-cost pricing tovariable pricing for goods and services, which he dubs "cell-phoneeconomics." That is, companies can now purchase storage and processingpower by prepaying - or paying by the minute - for example, flexibilitythey didn't have as much of in the past. He cites IBM as an example,which is offering variable pricing on its mainframes - you don't paywhen you're not processing.

Al Case, a senior vice president and analyst at Stamford, Conn.-basedIT consultancy Gartner, adds that companies are also making sureoutsourcing agreements include performance benchmarks. Now, contractsinclude language that says, In X point in time we'll do a formalbenchmark, then revisit the contract if that benchmark isn't met. "Idon't think we're seeing fewer long-term contracts, but morerenegotiation and repricing points, based on service levels and marketconditions," Case says. Rubin views benchmarking in general as key tocutting the best deals with vendors. He throws out a litany ofcategories, including price, cost, performance, labor rates andtransaction rates, which should be looked at whennegotiating.

Ryder's Vital also likes the fact that vendors are ditching thethou-shalt-do-what-we-command approach and are more willing to act aspartners. "Before, vendors came in with the answer," he says. "Nowthey take the time to understand our business." Vital admits he usedto play that role; he joined Ryder six months ago from Accenture(where he worked closely with Ryder).