HP has agreed to pay BskyB £318m in damages six months after a UK court ruled that HP owned EDS had misrepresented its capabilities in delivering a CRM system.
The CRM system was ordered in 2000 and the legal battle followed until the court ruled in BskyB’s favour in January.
BskyB originally claimed for £700m. But HP/EDS has not got off lighltly because the payment is ten times higher than the original cap on liabuility in the contract, which was £35m.
A BskyB spokeswoman said both parties have come to mutually agreeable terms and it is now closed.
See more on BskyB versus EDS on Tony Collins’ blog here.
I was wondering how the outsourcing industry might be affected by the case?
Obviously misrepresenting capabilities could cost suppliers a fortune but will it stop salespeople lying?