The continuing economic malaise has sharpened the focus on cost-cutting initiatives in IT outsourcing deals. Buyers are increasingly in a hurry to get deals done in order to secure cost savings. Although this should not be the only objective, good deals that will stand the test of time can be closed quickly. The key to achieving this is to expedite the process and get things right – and the deal done – as efficiently as possible.
Although not directly related to IT services, the recent case of Compass Group UK and Ireland Ltd v Mid Essex NHS Trust provides an instructive reminder of the need for parties to cooperate in long-term service contracts such as those for IT outsourcing. The case shows how aggressive enforcement approaches can easily backfire and breach contractual obligations to cooperate in good faith.