Are Savings Enough? In the United States alone, we spend over $100 billion per year on outsourcing, and that number does not include transition and termination fees that result from deals that go south. If you are a chief information officer, transition executive or provider relationship manager, you could be at risk if you are associated with a deal that does not deliver on the value proposition that precipitated the consummation of your contract.Keywords:
John Meyerson, outsourcing, outsourcing advisor, outsourcing relationships, benchmarking The Termination Fee Trap What is a termination fee? Simply, it is the pre-agreed fee that is paid by the buyer to the provider to prematurely terminate an outsourcing contract. There are actually several types of termination fees: termination for convenience, termination for cause, and termination for change of control (ownership). By far, the most important, and the focus of this article, is the termination for convenience fee.Keywords:
John Meyerson, outsourcing, termination fees, outsourcing contract, outsourcing advisor, sourcing, ito outsourcing
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