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?
There was lots more to come out of the event. But what do you think?