4 steps for switching outsourcing vendors

Not all outsourcing deals are created equal, and sometimes IT departments have no choice but to switch vendors for services. That requires careful planning to avoid problems with data transfer and other issues.

Here are some steps to take when companies switch outsourcing vendors, according to a recent CIO.com article:

  1. Take another look at your reasons for outsourcing. It’s possible a current arrangement isn’t working out because outsourcing no longer provides the right benefits for the company. It’s worth it to consider bringing operations back in-house before switching vendors.
  2. Consult the contract. The outsourcing deal may impose some hardships to end the contract and move to a different provider, including financial penalties and difficulty in transferring data. Companies may also find that the vendor violated its end of the contract, which could help make terminating the deal easier.
  3. Consider the costs of disruption. The transition from one vendor to another may involve some amount of downtime for the service in question. The costs associated with that must be taken into account when considering the benefits of the switch.
  4. Leverage competition. In some cases, businesses find they can use better deals from other vendors as leverage to renegotiate contract terms with the current supplier.

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