Strategic Large Deal Department and Its Activities in an IT Company

In today’s highly competitive business environment, IT companies are increasingly focusing on strategic large deals to expand their market presence, drive revenue, and stay ahead of the competition. A Strategic Large Deal Department plays a critical role in managing these high-value business opportunities. This department is responsible for negotiating, structuring, and executing complex, large-scale contracts with clients, partners, or other stakeholders.

The deals handled by this department are often pivotal for the company’s long-term success, requiring a strategic approach, deep industry knowledge, and the ability to manage high-stakes negotiations. The value of such deals ranges from several hundred million US dollars to billion dollars or more. Here is an example of a large deal win by a leading technology company Infosys:

Infosys secures a $454 million deal with Danske Bank

In this post, we’ll explore the key activities and importance of the Strategic Large Deal Department in an IT company.

Key Activities of the Strategic Large Deal Department

1. Identifying and Evaluating Opportunities

One of the first responsibilities of the Strategic Large Deal Department is identifying and evaluating high-value business opportunities. These opportunities can come from a variety of sources, such as potential clients, new markets, or key partnerships. The department works closely with other business units, such as sales, marketing, and business development, to pinpoint opportunities that align with the company's strategic goals.

The evaluation process involves analyzing the potential deal’s value, the market landscape, and how well it fits with the company's capabilities and long-term objectives. The team assesses both the financial and strategic benefits, as well as the risks involved.

2. Deal Structuring and Strategy

Once an opportunity is identified, the next step is to develop the deal structure. This involves determining the terms and conditions of the agreement, including pricing, deliverables, timelines, and the duties and obligations of each party involved.

The Strategic Large Deal Department works with the company’s legal, finance, and product teams to ensure that the deal is structured in a way that benefits the company while addressing the the requirements and priorities of the other party.

A well-structured deal is crucial for minimizing risks and maximizing returns, ensuring that both sides understand and agree to the terms before moving forward.

3. Negotiation and Closing

The heart of any large deal is negotiation. The department’s team members are expert negotiators, responsible for navigating complex discussions with clients or partners. They must ensure that the deal is favorable to the company, while also maintaining positive relationships with clients and partners.

Negotiations often involve multiple stakeholders from both sides, and it is the responsibility of the Strategic Large Deal team to manage these discussions, handle objections, and resolve any conflicts. Successful negotiation requires a deep understanding of the market, the company’s capabilities, and the long-term impact of the deal.

Once both parties agree to the terms, the deal moves to the closing stage. This involves finalizing all documentation, ensuring compliance with legal and regulatory standards, and securing signatures from the relevant parties. The Strategic Large Deal Department is responsible for overseeing this process to ensure everything is completed accurately and on time.

4. Risk Management and Mitigation

Every large deal carries risks. These may include financial, operational, legal, or reputational aspects. A core activity of the Strategic Large Deal Department is assessing and mitigating these risks before the deal is finalized.

The team works with legal and finance experts to identify potential risks related to pricing, delivery schedules, or terms that may lead to disputes in the future. They also consider external factors like market volatility or changes in regulations. To minimize these risks, the team might include protective clauses in the contract, such as performance guarantees, penalties for non-compliance, or exit clauses that allow the company to withdraw from the deal under certain conditions.

5. Cross-Departmental Collaboration

A Strategic Large Deal Department does not operate in isolation. It works closely with other departments across the organization, such as sales, marketing, product development, legal, and finance. These departments provide critical input, resources, and support throughout the deal-making process.

For instance, the sales team may help identify prospective clients, while the legal team ensures that all contract terms are legally sound. The finance team is involved in assessing the financial viability of the deal, and product managers help determine whether the company can meet the agreed-upon deliverables.

Effective communication and collaboration between these teams are essential for ensuring that the deal aligns with the company’s objectives and is executed smoothly.

6. Post-Deal Implementation and Monitoring

Once a deal is closed, the Strategic Large Deal Department may remain involved in ensuring that the agreement is executed as planned. This includes monitoring the progress of the project, ensuring that both parties meet their commitments, and addressing any issues that arise during implementation.

Post-deal activities can include overseeing the delivery of products or services, coordinating with the client or partner to resolve any concerns, and tracking the deal's performance against the agreed-upon metrics. This stage is important because it helps safeguard the company's reputation and ensures that the deal delivers the expected value.

7. Ongoing Relationship Management

After the deal is implemented, maintaining a strong relationship with the client or partner is crucial. The Strategic Large Deal Department may be involved in nurturing these relationships, which can lead to future opportunities or additional deals. Regular communication, addressing client needs, and providing exceptional service can foster long-term partnerships that benefit both parties.

Importance of the Strategic Large Deal Department

The Strategic Large Deal Department plays a central role in driving the growth and success of an IT company. Here’s why it matters:

1. Revenue Growth: Large deals often represent a significant portion of the company’s revenue. A successful deal can provide long-term financial benefits, such as multi-year contracts or access to new markets.

2. Market Positioning: Large deals often help IT companies establish themselves as leaders in their industry or expand their market share. Partnering with key clients or entering strategic markets can significantly enhance a company’s position.

3. Risk Mitigation: Strategic deal teams assess risks before closing deals, helping the company avoid potentially damaging situations that could harm its financial standing or reputation.

4. Relationship Building: These teams help forge strong, lasting relationships with clients and partners, which can result in future business opportunities and strategic collaborations.

Conclusion

The Strategic Large Deal Department is a vital part of an IT company’s overall strategy. By identifying high-value opportunities, structuring deals, managing negotiations, and ensuring successful implementation, this department helps drive growth, manage risks, and build long-lasting relationships. The team’s expertise and coordination across various departments are crucial for securing deals that not only meet immediate goals but also support the company’s long-term success.