1. Describe some of the features of the IT outsourcing contract that were negotiated by Schaeffer to accommodate its anticipated needs over the life of the contract.
2. Why was desktop support brought back in-house?
3. What kinds of communications did Schaeffer have with the vendor, and how well did they manage the relationship with ABC Corporation?
4. Based on Schaeffer’s experiences, develop a list of contract features that you think other companies should consider when negotiating an IT contract.
5. Do you recommend that the Reitzel and Colbert divisions continue to outsource their IT infrastructure activities to ABC Corporation? Should it include desktop support? Why or why not?

Schaeffer Corporation, was busy preparing to meet with top management at their corporate offices in Vilonia. In light of the recent business developments at Schaeffer, important IT decisions had to be made—and they had to be made soon. Four years ago, Schaeffer had signed a seven-year, $200 million outsourcing contract with ABC Corporation to outsource its centralized IT infrastructure. The deal meant that Schaeffer would retain its systems development activities in-house, and outsource data center operations, voice and data telecommunications, distributed computing support (including desktops), and help desk support for employees throughout the company.