Outsourcing exit planning and termination assistance: continuity, re-tender co-operation, TUPE, knowledge transfer, intellectual property, asset and contract transfers, exit plans, costs and injunctions
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Practice notes
Practice Note
This Practice Note highlights the principal risks when exiting an outsourcing arrangement, and covers specifying exit services, setting the duration and exit period, duties to co-operate and to supply information for any re-tendering process, treatment of personnel, know-how, intellectual property rights, transfer of assets and contracts, the exit plan and its costs, and steps to take where a contract lacks exit provisions. One constant of any outsourcing deal is that it will finish. Without anticipating failure, outsourcing agreements should be designed to ensure an orderly transition to the next phase following termination (whether for convenience or arising from a default), or upon their scheduled expiry date, so the handover is managed, predictable, and aligned with agreed responsibilities. Articulating the exit process within the outsourcing contract is critical. Moreover, the customer must hold the supplier to its contractual duties to plan for exit during the term so that it can be rapidly invoked, in clear and practical terms, in the event of termination or expiry...
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Web page updated on 21/05/2026
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