Conclusion: Discussions with IBRS clients have found that a large proportion of outsourcing contracts are re-negotiated or terminated early. The circumstances in which the exit occurs can affect the willingness of both parties to co-operate and for them to agree on the timing and cost to exit. If termination issues have not been negotiated as part of the original contract, then they will need to be finalised prior to the exit. In this situation an organisation is placed at a significant disadvantage, and there is a risk that lawyers will need to be called in. This is unlikely to lead to a smooth and non-disruptive exit.

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Terry Dargan

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Terry Dargan