Contract Management

APPENDIX 9

Outsourced services: exit management – planning guidelines

Introduction

This Appendix helps commercial managers to consider and plan for contract exit. The principles explored will be relevant to both buyers and sellers, but this is written very much from the client (buyer) viewpoint. This Appendix:

1. explains the rationale for comprehensive exit planning at the appropriate step(s) of the process;
2. provides guidance on formulating an exit plan, including the identification of barriers to exit;
3. suggests methods of removing or minimizing barriers to exit;
4. explains the importance of contingency planning to strengthen preparedness for an unplanned exit (eg where the supplier goes bankrupt).

Referencing back to Figure 4.1 in Chapter 4 ...