U.K. ruling could affect outsourcing worldwide

02/11/2010 | CIO.com

A British court's ruling on a case between EDS, which is now owned by Hewlett-Packard, and former client British Sky Broadcasting could have broad implications for how outsourcing contracts are handled around the world, experts say. The court ruled that EDS did not live up to the promises it made to British Sky Broadcasting during its sales pitch -- and the company may have to pay damages worth more than four times the value of the original contract. "This could set a precedent to encourage more customers to seek damages for business impact caused by poor IT delivery performance," said outsourcing analyst Phil Fersht.

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