More often than not, it is more desirable to renegotiate a contract than to terminate one. What do you think may be some of the effects of a contract termination from the buyer’s perspective? What about from the seller’s perspective?
Termination of a BPO contract will cause each of the parties to incur additional costs. The question to ask would be if the additional cost outweigh the risk or cost of not terminating and How much are the costs and can they be mitigated. Examples of such costs may include additional fees to the vendor for providing termination services, such as maintaining parallel environments and training of customer employees.
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Do you think that the contract structure selected for the contract can help reduce or avoid the need for renegotiations or terminations? Support your answers – elaborate!
Other than price/cost, why would one renegotiate a BPO contract?
Can you give examples of the absolute need for termination?
In your opinion which contract pricing structure better facilitates a contract renegotiation?
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