DALLAS, Nov. 30, 2009 – Termination fees may feel like a trap, but according to Alsbridge Inc., termination fees for outsourcing agreements aren’t necessarily a bad thing, explains the new article “The Termination Trap Fee,” published in the latest Newsletter from Outsourcing Leadership, the leading online resource for all things outsourcing, shared services and benchmarking.
“Buyers want to be able to terminate the agreement at any time, for any reason without cause,” said Ben Trowbridge, the CEO of Alsbridge, Inc. “Without termination fees, the buyer is committed to a multi-year contract that they cannot terminate. Unfortunately, providers will not agree to termination for convenience without a fee. That said, even the worst termination fees are significantly better than “buying out the contract.””
The article discusses just why termination fees make the buyer feel trapped and what an acceptable termination fee is.
“Our best advice is for the buyer to retain an advisor who specializes in outsourcing,” Trowbridge said. “An advisor can review the specifics of the situation and help you determine what a reasonable termination fee is.”
For the original Alsbridge thought leadership article, visit http://www.outsourcingleadership.com/knowledgebase/articles/xxxxxx.
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For more information on outsourcing advisory services, contact Alsbridge at 214-696-6410 or visit www.Alsbridge.com. For research and insight on outsourcing, visit www.outsourcingleadership.com
About Alsbridge:
Alsbridge, Inc. is an award-winning global advisory firm providing unparalleled expertise in information technology and business process outsourcing, shared services, finance and accounting, and benchmarking. The firm is fact-based and client-focused, with a proven methodology that fosters success. Alsbridge defines client goals and scope, finds the best cultural fit with providers, refines the best solutions and eases transitions and implementation. Founded in 2005, Alsbridge is the proven, effective difference.
