The cancellation of an outsourcing agreement. Usually, the terms for cancellation are spelled out in the contract as part of a termination clause. This clause protects both parties, since the desire to terminate by one party will severely affect the other. Most contracts require either party to notify the other within a specified period, such as three months. Failure to give adequate notice can result in severe financial penalties. Another aspect of the termination clause should be assurance of service provider assistance in transferring systems and data to an alternative site.
Contributed by: Beyond the Information Systems Outsourcing Bandwagon