Outsourcing Dilemma: The Search for Competitiveness, The

The client’s perceived risks

During the early outsourcing discussions it is only natural for the client’s management to have serious doubts about the desirability of transferring key business areas to a third party. Some of these doubts will be viewed as real risk areas, others will be seen as relatively vague concerns that may or may not come to represent a real problem.

What do we do if we want to take the service back?

The answer, as far as there can be an answer, is to build an exit strategy into the contract. The exit terms open to the client will depend to a very large extent on its own negotiating power and how keen the service provider is to secure the business.

Any worthwhile exit strategy will need to put the client back in a position ...