Murray Gottheil heads up Pallett Valo LLP's Business Law Practice and Family Business Law Group.
Outsourcing Agreements – What Happens When The End Draws Near?
No matter how successful the outsourcing of a core business function has been, when the end of the contract draws near, you want to be in full control of the decision as to whether to renew the contract, take the function in-house or move the function to a different provider.
Even if it is your intention to renew the agreement with the existing provider, without options you will have no negotiating position.
So, if you have outsourced an important business function, ask yourself:
When the contract comes to an end, will you have options, or will you be forced to renew the contract on whatever terms are offered to you, whether or not they are the best terms that might be available in the market?
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