IT contracts — dealing with the risk of supplier insolvency
The collapse of systems integrator and reseller 2e2 in January highlighted the danger for clients of companies such as 2e2 and focused attention on how to deal with this type of situation. At a recent Shoosmiths event, data, IT and banking lawyers shared practical experience of the risks and potential remedies associated with the insolvency of IT suppliers.
Main risks discussed included:
- heavy reliance on one supplier and lack of contingency arrangements if that supplier fails — 1,800 IT sector organisations became insolvent from 2009-11
- rights of administrators to refuse to perform contractual obligations of an insolvent supplier
- lack of appreciation in the client’s organisation of the critical applications provided by suppliers, which can lead to paralysis following an insolvency event
- concern that users do not understand the vulnerability of cloud-based offerings…
If you are registered and logged in to the site, click on the link below to read the rest of the Shoosmiths briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Shoosmiths
News from The Lawyer
Briefings from Shoosmiths
This first of two articles will deal with rights of way belonging to others.
Obligations on businesses to ensure supply chains are slavery-free, including investigating suppliers and intermediaries.
Analysis from The Lawyer
Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future
There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…