Home About Us Our Clients Pricing & Options Resources Order Articles FAQ's Blog Contact Us

Process Outsourcing Company-How To Terminate The Outsourcing Contract

When a process outsourcing company enters into a contract with a service provider, it has set its own objectives on what is to be achieved at the end of the process. There is, however, no guarantee that all or any of the goals will be achieved. Due to some shortcomings, the company may feel that it is not getting what it bargained for and want to terminate the contract before the contract expirers.

While terminating the contract, the process outsourcing company should not go directly into cutting ties with the provider since it might fail; a lot of factors need to be considered. First, look at the provider’s economic status since the contract is being terminated before the end of the agreed period. Bear in mind that premature termination of the contract might leave a provider stranded financially since it had invested a lot of money in the outsourced task. The service provider might also decide to seek legal redress for the breach of contract which might not go well for the company.

A process outsourcing company should further notify the service provider well in advance of its intention to terminate the contract. Make sure you have already prepared the termination fee as agreed upon prior to partnering, however this can be complicated if there was nothing of this sort agreed upon. Never rush into terminating a contract with the service provider if it will be the ultimate loser, as the company may take stringent action which may harm your business in the future.

Always have a budgeted transitional plan in place because moving from one provider to another or to an in-house programme. This is always expensive to a process outsourcing company. The company will in the long run realize that outsourcing is cheaper than transitioning since the latter comes with its own challenges that might require more money and time. An intelligent company will always have a plan B as an alternative in case the current contract crumbles before it is fully implemented. Again, never terminate a contract when you are not sure who will take over the process.

The process outsourcing company should at all times have a good communication plan so that the termination of a contract does not develop into a shameful circus. The provider might prefer using the media to pin down the company over breach of contract thus the need to have an in-house communication plan. The company must also be flexible to accommodate the interests of the provider. For example, if the provider asks for some time to source for another client give him a short extension which will develop into a win-win situation.

Daven Michaels Author of the book Outsource This!

7 Responses to “Process Outsourcing Company-How To Terminate The Outsourcing Contract”

  1. DelbertPIsam says:

    You are so awesome! I do not think I’ve truly read a single thing like this before.
    So good to find somebody with unique thoughts on this subject.
    Seriously.. thank you for starting this up. This web site is one thing that is needed on the internet,
    someone with a bit of originality!

  2. There’s definately a great deal to learn about this issue.
    I really like all of the points you have made.

  3. Inspiring story there. What happened after? Take care!

  4. Hey there! Do you know if they make any plugins to safeguard against hackers?
    I’m kinda paranoid about losing everything I’ve worked hard on. Any recommendations?

  5. Thanks for sharing such a pleasant thinking, post is pleasant,
    thats why i have read it fully

  6. I pay a quick visit daily some web sites and information sites to read content,
    but this weblog provides quality based articles.

  7. Useful information. Lucky me I found your website unintentionally,
    and I am stunned why this twist of fate didn’t happened in advance!
    I bookmarked it.

Leave a Reply

123 Employee
About Us
Our Clients
Pricing & Options
Resources
Order Articles
Resources
Privacy
Contact
Blog
Contact Us
Employee Referral Program
Job Openings
 

Join Our VIP Newsletter!

Enter your name and email below
Copyright -123Employee, LLC- All Rights Reserved | Contact Us | Entries (RSS) and Comments (RSS)