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Expediting TSA Exits to Enable Strategic Transformation

In: Divestitures and Spin-Offs

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  • Joseph Joy

    (Deloitte Consulting LLP)

Abstract

Transition services agreements or TSAs are seen as paths to post-divestiture business continuity. They can support the smooth separation of two independent entities. However, TSAs may also have a downside. They can lock up assets and contribute to stranded cost. With growing pressure on IT departments to reduce stranded costs, some chief information officers (CIOs) are exiting TSAs to preempt their negative operational and financial impacts. Despite their utility in ensuring business continuity, TSAs are binding agreements that prevent both the third-party vendor and the contracting entity from making changes to IT applications and infrastructure covered under the agreements.

Suggested Citation

  • Joseph Joy, 2018. "Expediting TSA Exits to Enable Strategic Transformation," Management for Professionals, in: Divestitures and Spin-Offs, chapter 0, pages 399-411, Springer.
    • Handle: RePEc:spr:mgmchp:978-1-4939-7662-1_32
    DOI: 10.1007/978-1-4939-7662-1_32
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