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By Patrick Garrett, Senior Industry Manager , Alsbridge, Inc.

What is a termination fee? Simply, it is the pre-agreed fee that is paid by the buyer to the provider to prematurely terminate an outsourcing contract. There are actually several types of termination fees: termination for convenience, termination for cause, and termination for change of control (ownership). By far, the most important, and the focus of this article, is the termination for convenience fee.

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