Expert Opinion: Strategic (Partial) Contract Terminations

Technology services contracts typically contain partial termination rights allowing the client to terminate portions of the services for strategic realignment.  Sometimes, the drive to terminate is due to dissatisfaction or a re-evaluation of the cost-benefit ratio.  But the motivation for change can be more of a “move to positive” rather than a “move from negative”.

This is especially true when organizations are developing multi-supplier services environments.  A client may choose to terminate some of the services of one supplier and hand to another so as to access best-of-breed services in a particular area, reduce costs, or broaden the supplier base as a means of reducing risk.

This paper examines some of the considerations when organizations are considering partial terminations.  It provides guidance towards an objective of minimizing disputes, since a key aspect is the continuing involvement of the supplier being partially terminated.

To read the full white paper, please click here.