When contracting with a vendor for a turnkey solution, what should the contract require?

When contracting with a vendor for a turnkey solution, requiring the source code of the application to be placed in escrow is vital for several reasons. By having the source code in escrow, the organization ensures that it has access to the application’s underlying code in the event that the vendor goes out of business, fails to provide necessary support, or if there is a need for maintenance or further development in the future. This precaution mitigates risks associated with vendor dependency and helps safeguard the organization against potential disruptions in service.

Having the source code available enables the organization to maintain control over the software, allowing it to modify, update, or repair the application without being entirely reliant on the vendor for future changes or support. This requirement is particularly important for critical systems where operational continuity is essential.

In contrast, while backup servers and staff training are important considerations in a comprehensive contract, they do not provide the same level of long-term security and risk management that having the source code in escrow does. Backup options can be addressed through different measures, but without access to the source code, the organization remains vulnerable to the fate of the vendor. Thus, including a provision for source code escrow aligns with best practices for ensuring the long-term viability of critical business systems.