IACCM Contract Management Forum

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2020-06-21 15:06:41

Asset/ Technology Takeover in Information Technology contracts

What are the major risks involved in signing an asset/ technology takeover clause by IT service provider. How can this be mitigated in the contractual clauses?
 •  IACCM  •   2020-07-03 11:11:17
Thanks for your question. To try and answer succinctly, transferring assets to an outsource service provider naturally increases dependence and has the potential to increase propensity of opportunistic behaviour after the contract has been signed. Appropriate pricing mechanisms and performance incentives can mitigate this challenge and create an environment where innovation and continuous improvement is embedded in the relationship.

You may find this paper interesting as it looks into all of this:

I would also recommend reading IACCM's Supplier Led Innovation Research Report (there is also a webinar which takes you through the findings): www.iaccm.com/resources/;
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