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Outsourcing IT: A Governance Guide by Rupert Kendrick

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Chapter 11. Contract Exit

Managing the termination of an outsourcing contract requires a number of complex issues to be addressed if a good relationship with the supplier is to be maintained throughout and after the process. The outsourcing process should not be indefinite as circumstances change and contracts need adjustment to reflect the parties’ circumstances and interests.

The contract term

An outsourcing contract may be:

  • for a fixed term; or

  • for a continuous period, renewable or terminable at certain agreed intervals upon agreed notice.

A contract may be terminated by mutual agreement with an agreed period of notice; unilaterally by either party upon notice in accordance with the provisions of the contract, for example, for breach of contract ...

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