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Outsourcing customers must be prepared for service disruption in Ukraine

Matthew Finnegan | March 6, 2014
Customers of outsourcing providers in Ukraine must ensure they have plans in place to move work out of the country in the event of further disruption.

Yesterday the CEO of Ciklum, a Danish IT outsourcer, which has thousands of employees in the Ukraine, said that media reports of disruption to business had been overplayed, but warned that customers were concerned with the ongoing situation.

According to Forrester's Cross, customers should revisit their contracts with suppliers and to be clear whether they contain exit clauses for 'cause' - which would need to stipulate specific events incurring, such as outbreak of war in a country - and 'convenience', which would allow them to exit a contract when they want, albeit by paying a fee.

They should also discuss with suppliers about arrangements they have in place around disaster recovery, for example, as well as ensuring that documentation is up to date should they wish to move work to another supplier.

"Generally speaking most companies will just wait it out. They just need to start now if they haven't put their treatment plans in place which say they are going to look for other suppliers, make sure that any work has the correct documentation so that I can take it back when and if they need to do that, and make sure they have tested their disaster recovery and taken extra steps to secure their physical facilities."

"If you didn't have the earlier risk management in place then that is all you can really do right now."


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