There are instances where one or both parties will decide to end an outsourcing relationship and the contract is terminated. In such a situation an ‘exit’ strategy should be developed and the transition guided by experienced staff or an advisor.

Ensuring you maintain performance as you transition services from one provider to another is about knowing your baseline service and having a plan for decoupling and transferring it. Clearly, this is a heightened period of risk for business continuity. You will need to consider how the ‘in-flight’ work will be managed. The relationship you have with your incumbent provider will determine how much of the transition they undertake. The key to success is getting agreement around scope, deliverables, estimated cost and to complete and change control.

Understanding the impact of the exit on staff and stakeholders, what key skills need to be retained or replaced, and how to handle HR issues around pay and conditions also underpins your ability to exit smoothly.

Before you can even begin to think about your exit, you need to revisit your business and sourcing strategy to ensure that the contract you scope is the contract you need – now and for years to come. You will also need to go through the selection process to find a suitable provider. Only once these steps have been taken can you enter into the exit phase.

The final area for consideration will be the governance of your new provider. Payment and receipts, information disclosure and due diligence are all areas that will need to be addressed.

Learn more about re-letting your outsourcing contract, or jump start your efforts and contact an EquaTerra advisor today.