With more than half of firms terminating or renegotiating outsourcing contracts before the contract term is finished, it is imperative that businesses have an exit strategy in place. Many companies are not prepared to terminate a contract. They become disillusioned with the idea that an outsourcing contract will last forever, or quickly start a contract for a short-term cost reduction without looking at the long-term effects. Successful businesses recognize the need to plan and prepare for terminating an outsourcing relationship before it begins. This termination may come prior to the term agreement, or at the end of such an agreement. Many of the ideas discussed in this article can be applied to either situation. Exit strategies are composed of three phases: the contract agreement, contract fulfillment and contract termination.

Contributors: Open Source
Categories: SIG U Resource, Whitepaper
SRC Type: All Outsourcing, Contract Development, Legal Process Outsourcing (LPO), Outsourcing, Sourcing