Archive for August, 2009

Outsourcing Exit Strategy

Posted in Business, Uncategorized with tags , on August 19, 2009 by katephiz

I’ve posted an article on eZine Articles.  I may post more. 

Phizackerley, Kate “Outsourcing Exit Strategy – Planning Ahead For the Full Contract Life Cycle.” Outsourcing Exit Strategy – Planning Ahead For the Full Contract Life Cycle

In the article I look at the importance of considering how to avoid lock-in with outsourcing contracts.  This is a sample paragraph:

That is the key question which any organisation outsourcing a service needs to consider before signing a contract. If the answer is “only with great difficulty” then your supplier is holding a hand of aces whenever you need to negotiate a new contract or a revision in contractual terms. If you lack the resources or knowledge to take the contract back in house, and no other supplier has them “off the shelf”, then there is substantial lock-in. If a supplier knows that moving the contract away from them would cost you £2m, they can easily afford to inflate their charges to you by £1m knowing that you have little alternative but to pay.

(A reminder as well that my business blog is now Kate Phizackerley on Business.)