Transition in outsourcing

Lexis®PSL Commercial

    Transition is a key stage in the outsourcing process, under which certain business functions are migrated to the new provider. Usually the first step in the outsourcing process follows signature of the outsourcing agreement. It then involves the new supplier taking over responsibility for the provision of the outsourced services.

    This Practice Note describes in practical terms the issues that arise when transitioning services over to a new outsourcing provider. It also considers the following aspects of transition in outsourcing agreements:

    • What is transition?
    • Transition process
    • Drafting the transition schedule
    • Transition plan
    • Milestones and milestone credits
    • Right of suspension
    • Management and reporting

    This piece is aimed at helping lawyers to understand what the contract provisions should look like and the way that they should be structured.

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