“By understanding transition services and the agreements that govern them, TIF, as a valuable member of the transaction team, can contribute and help the company achieve its business objectives. The comments and questions that follow make it better to “do things you need to do yourself,” not “that`s what they need to do to have a successful ASD” – in addition to the fact that all participants should be communicated to each other and that the agreement should be very detailed. Both parties will then be able to work to certify the quality of the sculpted assets and create a sufficient transfer of knowledge into the agreement, while assessing the separation costs and realistic schedules. This may include the option for buyers to downgrade services when needed, realizing that network and cybersecurity services are generally managed until all applications and components of the infrastructure are separated. Together, sellers and buyers can also identify the critical effects of separation. B related to the use of common applications, approaching data or outdated hardware and software that cannot be replicated and, if necessary, discuss clear communication with third parties to avoid unknown restrictions and costs. In the meantime, buyers may accept unambiguous IT transition services and insufficient operational support, which can lead to differences of opinion between the parties during the implementation of the agreements and a slower general separation process. Buyers can find sellers who now act as service providers and prioritize critical IT service requirements in their own organization, resulting in delays in reaction and solutions beyond buyer`s control. “In addition, buyers may be dependent for some time on the services of a competitor in the market, while facing a delay in realizing the benefits that the agreement should unlock,” says Mark Andrews, Managing Director at Deloitte Consulting LLP. In addition, IT-As can introduce a number of potential pitfalls, both for sellers and buyers, when transactions are monitored by consultants who lack ASD knowledge or experience. “Sellers, for example, may fall into the trap of offering too many indefinite services at too low a price, which can distort service expectations, legally link them to the provision of services they are not prepared for, and result in non-refundable costs during the transition period,” madsen says.
Sellers may also have little inherent interest in the continued success of their recipient and, willingly or not, deploy in non-compatible or inadequate services in such critical areas as cybersecurity, media coverage or external customer support, and violate the spirit, if not the letter, of the agreement.