7 Tips for Getting Out of a Bad Vendor Contract

Managing Director Gordon Wong offers time-tested advice in this article about how to navigate the exit steps for a poor outsourcing contract. Sample excerpt: “For contracts that are at or near their end, the most cost-effective approach may simply be biding your time. Doing nothing is certainly easy, yet it's a smart tactic in only a couple of situations, says Gordon Wong, a director at IT management consulting firm Pace Harmon. ‘Living with poor contract terms is generally acceptable only when the term is set to expire quickly or when the business impact of changing the contract outweighs the benefits of a new contract,’ he notes. ‘In other words, when the risk of business disruption outweighs the financial benefits of a new contract.’"