Alec Sarner

All League Offensive Lineman – Center

Agreement Exit Plan

An exit strategy should define your service needs when the parties withdraw from their relationship. These requirements may include: in many IT outsourcing disputes between customers and suppliers, it is clear that little or no litigation, or even exit management in general, has been given. Why do PEs often receive so little attention? The answer seems to be that at the time of signing the contract, the parties participated in the negotiations on the terms of the commitment for weeks or months and finally concluded a new agreement. It is understandable that termination is not at the forefront of people, especially in distress conditions where a customer resigns due to a late payment on the part of the supplier. Contracting is the honeymoon period of a business relationship in which one does not think of a divorce. This is why, in most years, the timetable for the contract that is to contain the IEE remains empty or partially concluded. Where possible, their exit strategy should be incorporated into purchase documents and contractual terms. This may seem counter-intuitive, but you need a strategy consistent with your sourcing strategy. Otherwise, you may be locked into an unsatisfactory contract.

You may have to pay more to stop the contract and minimize the company`s impact. The development of an exit plan needs to be the subject of several considerations, including: service expectations during the transition period can have a huge impact on both parties. The supplier will want to know what resources it must compel to enter into an agreement and what it can commit to finding new customers. On the other hand, the customer wants to ensure that he or she receives a high level of service until the end of the contract. A good EI must take both issues into account. The MSA included detailed exit management provisions and a timetable for termination assistance at expiry or termination. IBM continued to provide shared services through shared infrastructure for an additional 12 months after the expiry of the exit period, when associated systems and contracts were not transferable by third parties and the successor could not provide alternative services. Unfortunately, the infrastructure has not been consistently defined or used in the MSA. Most outsourcing agreements involve information technology at some level, simply because modern companies are so dependent on computer systems.

This is often the delivery or maintenance of complex systems (which a business may be totally dependent on and which the business owner may not fully understand) and, in this context, PMEs are essential to protecting the customer`s business position.

April 8, 2021 - Posted by | Uncategorized