Planning for Outsourcing’s Exit

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As the average duration of outsourcing contracts continues to become shorter, the issue of exit grows in importance. By tradition, best practice in negotiating exit terms has been: plan it early, and work hard to make it uncontroversial.

Sometimes, a case comes along and helps to remind us why a pre-contract focus on exit is important. A recent UK case, AstraZeneca v IBM, reinforces the importance of addressing the termination and exit provisions of an IT services agreement at the time of signing, rather than when the time has come to exit that agreement.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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