Service Agreement Considerations After Global Tech Outage

This article is a guide that discusses the implications of a significant global tech outage that occurred in July, resulting from a misconfigured update. It outlines the widespread disruptions caused by the outage, affecting various sectors, including healthcare and financial services, and leading to estimated losses in the billions. The document emphasizes the importance of preparing for such outages by reviewing IT vendor agreements and implementing robust systems to mitigate risks. It details the necessary due diligence customers should conduct when selecting vendors, including assessing performance history and disaster recovery plans. The guide also highlights the significance of contract terms that address risks associated with outages, including service levels and disaster recovery provisions. It advises customers to negotiate terms that ensure vendor accountability and outlines the importance of maintaining oversight throughout the contract period to prevent future outages.