I attended a seminar on Friday that looked at what the fall-out of BskyB’s court victory over EDS will actually be.
BskyB won a court case against EDS in relation to a failed CRM system. EDS was ordered to pay an initial £200m in damages.
The event was held at the offices of legal firm Berwin Leighton Paisner and was attended by outsourcing clients, suppliers and lawyers.
Computer Weekly co-sponsored the event with Burnt Oak partners, a consultancy that focuses on ensuring outsourcing agreements deliver results.
I will be writing an article about some of the questions raised, but here are some of the interesting discussion points.
– The case is not a landmark judgement because it doesn’t change law
– The case does not change the law but the appeal could be different
– The cost of insurance related to contracts will rise between 20% band 30% as a result of the case.
– The case might stop salespeople lying to clients about what they can deliver in order to win contracts
– large numbers suppliers will implement process changes
– It is a fact of life that salespeople over-sell
– Suppliers will have to take a look at how they train pre-sales people
– Marketing material is often cut and pasted into RFPs
– The project delivery teams should be brought into the pre-sales process as early as possible
– Contracts might now take longer to complete
– The use of third party sourcing consultancies will increase
– It will now be more difficult for suppliers to renegotiate contracts
– there are other similar cases ongoing
– Should PWC seek compensation for losses because it was beaten to the original contract by EDS, which overstated its capability?
– Customers need to better understand what they want. This is difficult because of long time frames for implementing contracts?
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There was lots more to come out of the event. But what do you think?