Outsourcing Ruling Against EDS Gives Customers Power
In what could be an important decision for the IT outsourcing industry and its customers, a London court recently ruled that EDS ( now part of Hewlett-Packard) must pay damages to a former outsourcing customer for failing to live up to its sales pitch.
British Sky Broadcasting (BskyB) had signed a £48 million outsourcing contract with EDS to build a customer service system in 2000, but terminated the deal early in 2002 after what it said was “woeful” performance by the IT service provider. BSkyB alleged deceit, negligent misrepresentation and breach of contract by EDS.
