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TMT Renegotiation

TMT contracts are frequently renegotiated to realign the customer's and supplier's objectives, service delivery and other obligations. Our specialist TMT team works closely with clients to address major IT project problems and issues of under performance. We facilitate solutions to enable our clients to recover or exit these projects and transform service delivery to meet their business objectives.

We have extensive experience in providing legal advice and assistance to enable successful renegotiation or exit/transition from major IT and sourcing projects.  We have acted for both customers and suppliers and as such understand the pressures, challenges, and key drivers for each party. 

A failing project and a breakdown in trust between a customer and supplier does not necessarily mean a project is doomed to fail.  We work to enable our clients to transform service delivery by renegotiating the contract and realigning the relationship. Where the relationship with the current supplier cannot be repaired, we help clients achieve an orderly exit and transition to new suppliers and/or in-sourcing of the service. These solutions avoid the cost and disruption of contentious termination, litigation and re-procurement.

We have employed our renegotiation methodology to great effect over the years and have been successful in re-aligning a number of the highest profile IT projects featuring in the national and computer press.

We provide structure, guidance and support to enable our clients to navigate difficult and demanding situations to secure their desired outcomes.  This is provided through our project management toolkit created to manage technology disputes, and to give clients greater transparency of work, progress, and cost.

We develop and negotiate pragmatic solutions aligned with business needs and priorities. These are delivered by a specialist team of TMT litigators and transactional lawyers.

The examples below demonstrate the range of our experience:

  • Advising the Department for Work and Pensions in the UK on the realignment of its £2.8 billion contracts with EDS (now HP) and BT. We started with more than 300 contracts with the two suppliers and transformed them into two tower-based contracts, allowing the Department to achieve significant savings and ensure future flexibility. To achieve this outcome two very experienced suppliers, with an established contractual position, had to be persuaded of the wisdom of a realignment that resulted in an apparent reduction in their income forecasts.
  • Advising a FTSE 100 global energy group on the renegotiation of its £600m outsourcing agreement following the supplier's failure to deliver a significant transformation programme.  We advised on the renegotiation of the existing agreement and the successful move from a single-source model to a multi-source model, with the customer bringing some of the services in-house and assuming the role of service integrator, and re-procuring other services from alternative suppliers;
  • Advising a global IT services provider on a dispute with a central government department regarding the implementation of a strategic payment system.  We advised on the resolution of the dispute and renegotiation of the contract, preserving the supplier's involvement in the delivery for an extended exit and transition period;
  • Advising an insurance company in a dispute with IBM in relation to the supplier's failure to deliver a key transformation programme for the insurer.  We advised on establishing a positive dialogue between the parties and the realignment of the existing agreement to accommodate an alternative solution acceptable to the parties.