Learn how one finance organisation used escrow to prepare for the unexpected — and navigated a supplier bankruptcy without disruption.
A long-established, international professional services firm based in the Netherlands. The group works in close partnership with specialist technology providers to support its global operations and innovation strategy.
The business was dependent on critical applications developed by a third-party software vendor. With Software Escrow Agreements in place for managing the front-end interface and the back-end infrastructure.
While the technology itself met expectations, the client had growing concerns about the long-term financial health of the supplier. As a licensee, they had no direct control over the vendor’s operations, but they did have significant operational exposure should anything go wrong.
Their objective was clear: if the software vendor failed, they needed a reliable, legally backed route to continue using and maintaining their solution.
“Escode's support and their offered services meant that when our vendor failed, we had everything ready – from the source code to the installation guides. Everything was well arranged and we didn’t feel any negative impact or any down-time in the process."– Client
That concern became reality in late 2023, when the software supplier entered bankruptcy proceedings. Without the right provisions in place, this event could have left the client locked out of the applications their teams relied on every day.
Fortunately, the client had already implemented two software escrow agreements with full technical verification. This meant the source code, supporting documentation, and build instructions were regularly deposited and tested to ensure usability in a release event.
When the bankruptcy occurred, Escode facilitated the release of the materials quickly and seamlessly, enabling the client’s internal and external teams to maintain operations without disruption.
“The success of this release shows the real-world value of software escrow as part of a third-party risk strategy. It’s not just a legal box-tick, it’s a continuity enabler.”
– Jacob Paolo, Sr. Account Manager, Escode
This case underscores the importance of not only having software escrow agreements in place but ensuring it is actively managed and verified. For organisations that depend on third-party software, especially in regulated sectors like finance, this kind of preparation can make the difference between a minor disruption and a major crisis.
