Technology services contracts typically contain provisions allowing all parties to terminate services under certain circumstances. 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.
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