United States

The three options when an outsourcing contract ends -- extend, divide or terminate


When an outsourcing contract is nearing its end, the buyer must make a strategic decision based on its own unique situation: extend the contract in its current form, divide it between the incumbent and another or several parties, or terminate it with the existing provider.

The decision should not be hastily made, as possible opportunities may be missed or the solution may be worse than the problem.

Conducting a critical review of the current outsourcing arrangement, and weighing the alternatives in terms of the desired future state, will help decision makers come to the right conclusion.