BSkyB’s legal case against EDS is over, and the loser in terms of both money and reputation is EDS. EDS’s new owner, Hewlett Packard, has already paid £270 million in damages to Sky, and more may follow.
The case has significant ramifications for all CRM outsources, indeed, for any IT outsourcers.
The bare bones of the case are these.
In 2000, BSkyB, the UK’s largest satellite broadcaster, called for tenders to design, build, manage, implement and integrate processes and technology for a new CRM system for Sky’s Scottish contact centres.
EDS won the bid in the face of keen competition from PwC, but then failed to deliver the project. Sky eventually sacked EDS and, in 2002, brought the project in-house.
Instead of the intended CRM project going live in July 2001 and being completed by March 2002 at a baseline budget of £47.6 million, Sky contended that the functionality for the CRM System was only completed in March 2006 at a cost of about £265...