Planning A Graceful Exit — Checklist For A Breakup

This article is the first in a four-part series that seeks to provide organizations with useful checklists to key components of outsourcing arrangements. One key component that does not often receive the attention it deserves is the exit strategy. More often than not, the pressures of realizing immediate cost savings in outsourcing deals drive organizations to agree to termination or repatriation assistance terms and conditions that may end up eroding any savings realized upfront. Not only can termination and repatriation terms and conditions guard against such erosion, they can also provide significant leverage when negotiating outsourcing renewals, as well as mitigate the risk of disputes over each party's rights during repatriation.