Protecting intellectual property
Where a divorce situation looms in an outsourcing relationship – especially when it emerges rapidly or unexpectedly – experience shows that the key element the CEO should watch out for is the ownership of jointly developed applications and other intellectual assets and tools. These are the most common thing to slip through the net, and commercially the most contentious.
The major risk factor lies in the tendency for development people on both sides to get lazy and overly comfortable as an outsourcing contract rolls along. For example, after three years of the agreement they might start to cooperate on something that was never envisaged in the original scope of the agreement – and nobody ever quite gets round to ...
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