ICT
ICT Licence Renewal Lock-In
Surfaces software licence renewals routed as deviations on grounds of proprietary lock-in.
Why lock-in deviations need scrutiny
Software licence renewals are frequently routed as sole-source deviations on the grounds of proprietary lock-in, and while genuine lock-in exists, the claim is also a convenient way to avoid competition indefinitely under Treasury Regulation 16A6.4. The AGSA and SITA governance expect organs of state to test whether lock-in is real and whether alternatives were ever considered. AuditPro Core surfaces licence renewals deviated on lock-in grounds so recurring sole-source ICT spend is challenged rather than rubber-stamped each year.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Recurring ICT Renewals
84
as deviations
Lock-in 3yr+
37
44%
Renewal Spend
R 73.5m
▲ R 11m
Avg Annual Increase
14%
above CPI
Renewal Spend Growth (R'm)
Longest-Running Lock-In Renewals
| Product | Vendor | Years Deviated | Annual (R'000) |
|---|---|---|---|
| ERP support | Vendor IT-1 | 7 | 12400 |
| Database licences | Vendor IT-2 | 6 | 8900 |
| Security suite | Vendor IT-3 | 5 | 5200 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Genuine versus asserted lock-in
True lock-in exists where data, integration or skills make switching genuinely impractical. Asserting lock-in without testing it is a way to entrench a supplier permanently.
The cost of permanence
A sole-source renewal repeated annually compounds into a long-term commitment never tested against the market. Pricing drifts upward with no competitive check.
Exit and interoperability
Good ICT contracting plans for exit through data portability and open standards. The absence of any exit strategy is itself evidence that lock-in was accepted rather than managed.
SITA and ICT governance
ICT procurement carries additional governance expectations, including SITA involvement for certain spend. Repeated lock-in deviations should be visible to that governance, not hidden in routine renewals.
How AuditPro Core Bridges the Gap
- Deviation surfacing: isolates licence renewals processed as lock-in deviations for review.
- Exception workflow: recurring sole-source renewals are flagged for market-test and exit-strategy assessment.
- Traceability to source: links each renewal to its deviation memo and prior years' renewals to show the pattern.
- Audit-ready export: produces an ICT lock-in register evidencing how each renewal was justified.
Key Takeaways
- Test whether lock-in is real before accepting it as a reason.
- Annual sole-source renewals entrench suppliers and drift pricing up.
- Plan exit through portability and open standards.
- Make recurring lock-in deviations visible to ICT governance.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.