Global Negotiation Skills for Tech Export Success

Global Negotiation Skills for Tech Export Success
Anoosh Kotak9 December 2023

Negotiations are a constant and vital aspect of business operations, especially for IT service export businesses, which navigate complex landscapes to deliver expert services. They are crucial for establishing strong partnerships and creating win-win situations. However, only 7% of respondents in a survey said they felt comfortable negotiating.

A skilful negotiation allows the client to acquire the desired services, tailor-made to their requirements, while the service provider can secure fair compensation and build lasting client relationships. A well-negotiated agreement opens doors to new opportunities, enhances profitability, and fosters growth for all parties. 

This guide delves into the fundamentals of achieving favourable negotiation outcomes, explores essential skills for IT service export businesses to master, and uncovers strategies for enhancing negotiation success. Additionally, we will reveal the mindset required for successful negotiations, the art of closing the deal, mistakes to avoid, and how to maintain healthy business relationships beyond the negotiation table.

What are Negotiation Skills: Fundamentals of a Good Negotiation

Negotiations are complex and multifaceted but have similar fundamental elements.

Fundamentals of a Good Negotiation
  • Preparation:  This step includes researching the clients’ needs, understanding their industry, and anticipating potential challenges or objections. Consequently, you can present tailored solutions, demonstrate expertise, and negotiate better. Research finds that good preparation increases the chances of successful negotiations by 26.7%.
  • Active Listening: While obvious, this is fast forgotten. You can tailor your pitch and offers when you understand the client's concerns, priorities, and objectives. Moreover, active listening helps establish trust.
  • Effective Communication:  Clear and effective communication is an important aspect of negotiation skills in business communication. Practice articulating your value proposition, addressing client concerns, and highlighting the benefits of their services concisely and compellingly. When confronted, seek clarifications, ask relevant questions, and ensure your messages are understood in the right context.
  • Win-Win Mindset: Negotiations are not about one party winning or getting their way. Business itself isn’t a zero-sum game. It is a positive sum game where you should strive for mutually beneficial agreements.

    Consider Harvey Specter from the TV series Suits, dubbed the ‘best closer in the city’. By not playing the odds but the man, he always finds a way to close the deal and get his clients more than they bargained for. Although fictional, he exemplifies the power of negotiation skills in achieving favourable outcomes.
  • Building Relationships: Successful negotiations extend beyond reaching an agreement. Due to practical constraints, a current deal may not go through. But earning goodwill, respect, and a contact for future business is always possible.

IT service export businesses negotiations landscape

IT service companies often engage in cross-border collaborations with specific challenges and opportunities.

  • Cultural nuances: Different cultures have distinct approaches to negotiation, communication styles, and expectations. The Japanese like multiple meetings; negotiations may not ‘get done’ in a single call. Similarly, Americans are not culturally homogenous; every team will have a unique negotiation context.
  • Time zones: Coordinating cross-border negotiation meetings and maintaining communication across different time zones requires careful planning and flexibility. Instead of sticking to your working hours, be open to finding a midway. As an Indian firm, you may need to take meeting calls at 11 pm to match working hours with their American counterparts.
  • Language barriers: Language isn’t just about understanding communication; it is about establishing trust and feeling comfortable with the other party. While English is the global business language, be open to employing strategies such as using interpreters and translators or involving bilingual team members to bridge the language gap and ensure accurate understanding.
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Strategies to Enhance Negotiation Success

To increase the chances of your deal closing, you can employ research-based strategies that have proven effective in achieving favourable outcomes. Here are some key strategies to consider.

Strategies to Enhance Negotiation Success
  • Understand the other party's motivations: In the end, negotiating is a mind game. What are they trying to achieve in the negotiation? What are their needs and interests? Once you understand their motivations and fears, you can tailor your approach to appeal to them.
  • Build rapport:  According to research, 36% of people feel that negotiations are potentially uncomfortable. Building a rapport with the other party becomes crucial as they are more likely to trust and work with you. Try finding common ground, be friendly and respectful, and listen attentively.
  • Gracefully stand your ground: Don’t be afraid to walk away if you’re unhappy with the negotiation terms. Operating from the point of insecurity always weakens your citation. Your confidence shows the other party that you're serious about getting what you want and are not afraid to lose the deal.
  • Be quiet: After you’ve made an important point, take a pause. It is okay to be quiet since it is a sign of assurance. Silence often makes people uncomfortable, forcing them to initiate conversation.
  • Use emotional appeals: In our mind, decision-making is handled by the part that governs emotions. That part doesn’t understand logic or language. Hence, people may lean towards ideas or views that appeal emotionally rather than logically. Connect personally and show them how the deal will benefit them emotionally.
  • Be patient: Negotiations can be a long and frustrating process. Be patient, persistent, and never give up.

The Art of Closing the Deal: How to Negotiate with Vendors

Ludwig Herard rightly said, “A compromise is the art of dividing a cake in such a way that everyone believes he has the biggest piece.” Closing the deal requires technical finesse, effective communication, and a deep understanding of the needs and motivations of all parties involved. Here are some key aspects to consider.

1. Establishing Mutual Agreement

Closing the deal involves reaching a mutual understanding and agreement on all essential terms. This step includes aligning on project scope, deliverables, timelines, pricing, and any other crucial aspects of the agreement. Clear and concise documentation ensures that all parties are on the same page and have a shared understanding of the agreed-upon terms.

2. Clear and Transparent Payment Terms

Specify the payment schedule, methods of payment, and any other financial details relevant to the agreement. The clarity in payment terms helps manage expectations, avoids disputes, and fosters a healthy client relationship.

3. Apply Principles of Psychology 

Understanding the psychology of closing the deal can greatly influence the negotiation outcome. Recognising and addressing various psychological biases can help shape the negotiation process. By leveraging psychological insights, IT service export businesses can tailor their approach to influence clients’ decisions effectively and create mutually beneficial outcomes.

Apply principles of psychology

If you’re looking to improve your negotiation skills, we recommend the following resources.

Several biases can influence negotiations and impact decision-making. These manifest as behavioural pitfalls like

  • Being too focused on winning at the expense of the other party's satisfaction
  • Failing to listen and understand the client’s concerns and needs actively
  • Rushing the negotiation process without thoroughly exploring all possibilities
  • Neglecting to build rapport and establishing trust with the client
  • Being inflexible and unwilling to consider alternative solutions or compromises

Awareness of common biases is crucial in negotiation to avoid making costly mistakes. Here are some examples of preconceptions to be mindful of the following.

  • Confirmation Bias: You may favour information confirming pre-existing beliefs or assumptions while disregarding contradictory evidence. You may have a preferred solution and only search for evidence that supports its superiority, ignoring alternative solutions that may better meet the client's needs.
  • Anchoring Bias: When you rely too heavily on the first piece of information received when making decisions, you’re anchored to it. In negotiation, the initial offer or proposal can serve as an anchor, influencing subsequent negotiations. Do not anchor your position too high or too low. 
  • Halo Effect: The halo effect tends to form an overall positive or negative impression of a person, organisation, or idea based on a single characteristic. This bias can influence perceptions and judgments about the other party's credibility in negotiation. You may overlook potential red flags or negotiation pitfalls if you’re in talks with Apple or Tesla.

Recognising these biases can help you navigate negotiations more effectively and mitigate their influence on decision-making processes.

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After the Negotiation: Maintaining Healthy Business Relationships

Sustaining and growing business relationships post-negotiation is crucial for long-term success in the IT services industry. Focus on the following.

  • Delivering on Promises: Completing the negotiation is just a foot in the door. Fulfilling commitments during the negotiation process is essential for maintaining trust and credibility. Deliver high-quality services, meet deadlines, and exceed client expectations.
  • Communicate: Regularly updating clients on project progress, promptly addressing concerns, and proactively sharing relevant industry insights demonstrating a commitment to the client's success.
  • Value-Added Services: Everyone likes a freebie. Providing additional value beyond the initial agreement strengthens the relationship. You can offer ongoing support, training, or proactive suggestions for system improvements, showcasing your dedication to the client's long-term success.
  • Seeking Feedback: Actively seeking client feedback shows a willingness to improve and adapt. You can gather feedback through surveys, meetings, or periodic check-ins to understand client satisfaction and identify areas for further enhancement.


The ability to negotiate effectively empowers you to navigate cross-border challenges, address cultural nuances, and overcome biases that may arise during negotiations. It allows you to create value, build strong relationships, and establish a competitive edge.

By understanding the negotiation landscape, developing essential negotiation skills, and mastering the art of closing the deal, you, as an IT service export business, can achieve mutually beneficial outcomes that satisfy both clients and themselves.

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Frequently Asked Questions

Q1: What is the importance of negotiation in the IT service industry?

Ans. Negotiation allows IT service export businesses to get better at deal closing with clients, define project scope and deliverables, and set realistic expectations. It further helps determine pricing and payment terms, address potential conflicts or concerns, and build strong business relationships. 

Negotiation skills enable IT service export businesses to navigate complex contracts, secure profitable deals, and differentiate themselves in a competitive market.

Q2: What are some unique challenges of cross-border negotiation for IT service export businesses?

Ans. Cross-border negotiation in the IT service industry includes the following challenges:

  • Cultural nuances and language barriers
  • Time zone differences
  • The need for virtual communication can also pose challenges
  • Navigating international legal frameworks
  • Geopolitical factors Impacting negotiations

Q3: Which key skills are required for successful negotiation in the IT services sector?

Ans.  Successful negotiation in the IT services sector requires combining the following key skills.

  • Active listening to understand clients' needs and concerns
  • Effective communication to articulate ideas clearly and build rapport
  • Problem-solving and creative thinking to find mutually beneficial solutions
  • Patience and flexibility to adapt to changing circumstances
  • Strong analytical and research skills to gather relevant information, analyse market trends, and make informed decisions

Q4: What are some effective strategies for improving negotiation outcomes in the IT services industry?

Ans. The following strategies are effective for improving negotiations.

  • Adopting a win-win mindset, building trust and rapport
  • Actively listening to clients to seek mutually beneficial solutions
  • Thorough preparation and information gathering
  • Creating value through collaboration and exploring multiple options
  • Value-based pricing

Q5: Why are clear and transparent payment terms important in closing deals?

Ans. Clear and transparent payment terms avoid misunderstandings and disputes. They clarify when and how payments will flow, ensuring both parties are aligned. Clear payment terms help manage expectations, minimise the risk of payment delays, and maintain a healthy client relationship. 

Q6: How can IT service export businesses maintain and grow business relationships after negotiation?

Ans. You can maintain and grow business relationships after negotiation by:

  • Delivering on promises through high-quality services
  • Maintaining effective communication and being responsive to client needs
  • Providing value-added services like additional support, training, or improvement suggestions
  • Actively seeking feedback

Q7: How does effective negotiation affect the global IT services market?

Ans. Effective negotiation enables IT service export businesses to:

  • Secure favourable contracts and stay competitive
  • Establish partnerships with global clients to capitalise on international opportunities
  • Expand their market reach and drive growth
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About the author
Anoosh Kotak
“The 0 to 1 journey filled with interesting problem solving & learning experiences.”Sports, Travel & Binge-watching
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