Transitions

George Kimball and Mark W. Heaphy

Chapter 9 in Outsourcing Agreements, 2025, pp 242-273 from Edward Elgar Publishing

Abstract: Describes the elaborate processes to transfer data, knowledge, operations and often, personnel to a supplier (‘transition’) and then disengage through reverse transitions or transfer to another supplier. Discusses the variety of transitions, planning, payment for transitional services, provisions for delay, transfers of assets, facilities and personnel. In the US, subject to various statutes and legal doctrines, employees may be severed and then hired by an incoming supplier, typically for comparable compensation. We discuss such potential issues as joint employment and disclosures under plant closure laws, if applicable. Within the EU and UK, acquired rights legislation, commonly known by the acronym TUPE (Transfers of Undertakings [Protection of Employment]) treats outsourcing of business functions in the same manner as sales of businesses, so that employees transfer to suppliers by law, with pay, benefits and (where applicable) unions. Disengagement presents corresponding complexities, sometimes compounded by operational transformations undertaken during the term of the outsourcing contract. Initial transition and eventual disengagement are much simpler for highly automated standard service offerings, and effectively limited to transfers of data, with configuration and setup of relevant systems.

Keywords: Outsourcing; Business Process Outsourcing; BPO; Information Technology Outsourcing; ITO; Transition; Disengagement services; Reverse transition; Co-employment; Acquired Rights Directive; ARD; TUPE (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035316984
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