+ IT Transition Service Agreements

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There are many reasons why transition service agreements cannot be approached in the same way as conventional IT service delivery arrangements.

Firstly, it is true to say that the service provider is usually not in the business of providing the transition services on a commercial basis. The service provider’s only experience of providing the transition services will have been confined to providing these services to related group companies and business units.

Secondly, the services will usually be provided on an "as is where is" basis with no promise of enhancement or no road map for change or innovation. This principle is usually essential to the service provider who has more than likely pursued a strategy of moving toward greater operational efficiencies and who does not want to be obliged to upgrade technologies, employ more staff or purchase more resources.

Thirdly, this is not intended to be a long term relationship as is the case with many IT and business process outsourcing transitions. In the majority of cases a TSA will be in place for no more than 12 months but the usual length is around 6 months.

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