As a subset of business process outsourcing (BPO), shifting the IT functions of a company to a third party, whether through a managed services agreement or an outsourcing contract can be a similarly complicated process, compounded by the fact that a transition to an off-site location may often need to take place without any downtime or service disruption. Given the fact that most companies these days depend on an IT infrastructure that is essential to day-to-day operations, the process can sometimes feel like you may be conducting a multiple- organ transplant.
Having a properly-drafted agreement helps companies frame their requirements and expectations clearly (which in turn helps the outsource provider do their job better) and can spare both parties the headaches associated with an incomplete transfer of functions, vague specifications or confusion over the expected service levels. This is always a case where a sound early investment in legal advice provides insurance against severe fallout later on, especially when you consider that some companies’ business involves processing their customers’ financial or personal data and not being adequately protected legally could lead to potentially catastrophic consequences.
