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TECH SUPPORT Beware the IT jabberwock Acquiring vital information technology services shouldn't be done solo. Like any specialized area of the law, experts can help make the deals run smoothly. BY GERRY BLACKWE LL I f you're a business generalist or in- house counsel, you likely wouldn't try to complete a multimillion- dollar real estate transaction with- out benefit of counsel specialized in such work. So why would you think of flying solo on a blockbuster deal to acquire vi- tal information technology services for your client or company? That's the essence of the message from Duncan Card, a leading member of the IT bar in Canada. Card is a partner and co-chairman of the technology, procure- ment, and outsourcing practice groups at Bennett Jones LLP in Toronto. He acts for both IT vendors and large buyers of IT products and services, and has writ- ten over 250 articles and papers as well as a book, Information Technology Trans- actions, on the subject. "This is all I do," Card says, "so I see a tremendous volume of IT transactions on a continuous basis, both from the buyer's and the vendor's perspective. In the course of that, you ac- cumulate a lot of business knowledge." Yes, it's an unashamed plug for his own services, and, yes, the message might smack a little of FUD (fear, uncertainty and doubt), the term often applied in the early days of the IT industry to IBM's disinformation tactics for softening up prospective customers. But Card makes a compelling case. He believes, especially now, lawyers need to hear the message about the risks of entering into big IT transactions without specialized coun- sel. It's not as if he's claiming to be the only source of such advice. Why now? For one thing, he says, we're, perhaps surprisingly, entering a period of heated-up activity in the IT sector. While other areas of the economy are slowing, the IT sector, especially the part that provides core products and services to large enterprises, is on a roll, as evidenced by recent upbeat financial news from key vendors such as IBM. When bottom lines are under pressure, Card notes, companies start looking for ways to make themselves more efficient. One way is to upgrade IT infrastructure. Another is to implement major new en- terprise resource management (ERP), customer relationship management (CRM), or business intelligence (BI) systems. Still another is to consolidate back-office systems through outsourc- ing or shared-services arrangements, which can both increase efficiency and reduce IT management costs. The relative strength of the Canadian dollar is another factor. "It makes the latest technology more affordable," Card points out. "Many big banks, telecom companies, manufacturers, transporta- tion companies are looking for an op- portunity to upgrade their IT infrastruc- tures, and now is a very good time for them to do it." www. C ANADIAN mag.com APRIL 2008 35