Contractual Details and ManagementContracts are exchanges of promises or obligations between two or more organizations, it is the key aspect of any critical business function encompassing. In this case Bharthi Airtel and IBM, both these organizations agree on aspects such as terms, pricing, service level agreements, human resource management, dispute resolution procedure, acceptance strategy and procedures, exit strategy, non-disclosure agreements . As a matter of procedure, Bharthi Airtel followed the contract management process to finalize the contractual terms with IBM during the procurement lifecycle. Procurement life cycle: Procurement life cycle of IBM and Bharti airtel, explains the process carried out during each phase. Bharti Airtel has come up with a sourcing strategy, of outsourcing all its non-core IT systems to a single supplier. The next step was to select a successful supplier in the IT industry. Airtel's provider selection process follows several steps, as shown below. • Vendor Identification • Inquiry • Quote Request • Partner Evaluation • Negotiations • Business Award Airtel evaluates/prefers vendors based on factors such as cost, quality, previous delivery record, innovation/new technology, scalability, SLA. IBM has met all the expectations/constraints of Airtel and proceeds with the next phase called Contract Management.Contract Management:Pre-Contract Phase:Before entering into contract management, Airtel had its own principles that defined its approach towards the future outsourcing agreement with IBM.Principles:1. The agreement should be a well-planned and thought-out agreement.2. Planning and frequent reviews to stay on track.3. Adherence to transition management.4. Win-...... half of the card ......provided and payment made and/or at the end of a set period of time. This situation, however, does not eliminate the need to develop a contract exit strategy as part of the risk identification and reduction process, and reinforces the importance of laying the foundations of sound contract management. exit from the contract may be requested or even hoped for. The following is just a list of examples and is certainly not an exhaustive list: serious failure by your organization; this may include breaches of contract or changed circumstances - market, politics, economics, financing resulting in major changes in procurement needs and subsequent financial results failure to pay supplier invoices • serious supplier default; this may include breaches, technical inability, capacity, etc. • frustration of contract.