Exit Clauses in IT Outsourcing Deals

Most first generation outsourcing companies realize that they did not do a good job in firming the exit clause for reverse transition for the incumbent. There is anyways not too much of motivation for an outgoing provider to assist the incoming provider with information after losing the deal. A contract binding them for this will at least some help though it will never be complete and motivated.

Am also seeing that many second generation IT sourced deals have this in fair detail. Eventually enterprises will move to a framework and model where they will decide what they want to retain even as they change providers and the agreements will be more cognizant of the fact that the new service provider will eventually need to go one day and so the exit clauses are important today for tomorrow.