We advised a supplier about a failing BPO contract in which the customer was complaining vigorously about delay. Unfortunately our client had been unable to persuade the customer to enter into any change documentation. Therefore, by the time we were instructed, the services did not resemble the contract description and the documents did not fairly reflect the extent of the customer’s missed dependencies and changes.
The contract required that, as a next step, the supplier had to invest in several major new projects. This had created a crisis because the customer was threatening termination and would need to procure this work elsewhere (at much greater cost and risk). However, until the projects were delivered, the contract was loss-making, costing the supplier millions of pounds each month.
Therefore, we helped the supplier to identify its most persuasive arguments and to plan a strategy to engage with and confront the customer. This direct and careful approach helped the supplier to bring the disputes to a speedy resolution. Our client was able to agree a settlement and some common objectives with the customer to reduce the scope of the contract and to begin a consensual exit.
As part of this process, we also helped our client to insist on better communication and change management to instil better discipline on the customer during the exit period.