When the fire alarm goes off, where is your exit?
What is the first thing companies SHOULD PAY ATTENTION to when they are about to sign a contract with an IT partner? Look for ways to exit! While it is not always easy to think of exit clauses when you say “I Do!” that is exactly what you need to do when you are going into a long-term, multiple-project contract with your IT partner.
Granted that business relationships should start with a deep level of commitment, it still makes sense to understand the costs and risks involved if you want to get out of the contract. Some businesses make the mistake of signing up with multiple IT outsourcing companies to increase their flexibility, and to get a better deal on pricing.
According to Bob Mathers, Principal Consultant, Compass Management Consulting, complications exist and are no different than if you were getting out of a single vendor’s contract. They include resolving contractual issues, knowledge transfer costs, software licensing fees, re-training and start-up costs for the new deal, and the expense of internal resources needed to manage the change. Imagine the cost involved when exiting multiple vendors?
While varied reasons exist for exiting from an outsourcing contract – pricing, change in technology, management, market requirements, and competition – the most important one is the loss of flexibility. Flexibility does not just mean ramping up or down the team’s size, or changing the technology mix for IT projects. For today’s business organization flexibility is a mind-set that indicates the willingness of the partner to change direction, process, and/or people based on quickly changing market or business needs.
At Suyati, our Dedicated Global Team is created specifically for you. The team size, experience and skill profile is defined and the team is built for you. For example, we have built and deployed teams of various configurations – a 15+ member .Net team, a 3 member team for Python/Django OpenSource development, a 3 member team for Android development, etc. If the team reaches a critical mass, we can also convert your DGT into a captive product development center, or create a joint venture between both the teams, or simply continue to use the DGT to scale up or down – the exit possibilities are endless. So is our ability to be flexible.