In any outsourcing relationship, there are two especially critical times: when the services are transitioned to the provider (take-off) and when the relationship is terminated (landing). As counsel for a company outsourcing services, your objective should be to negotiate an agreement that facilitates both a seamless take-off and landing, in order to minimize business and service disruption at both points. Meeting these objectives will minimize repeat investment, recognize stranded investment and maximize your company's ability to successfully run its business. This article will address the key issues associated with the take-off of an outsourcing relationship.
Reporting and meetings
Even if the transition plan is perfectly structured, effective communication between the parties is critical to ensure that the transition goes smoothly. A good way to promote open communication is to have weekly status reports and/or meetings with the provider. These communications should include an active obligation on the part of the provider to identify any potential delays in meeting the timetable and deliverables of the transition plan, along with proposals for how to remedy or mitigate any delays.