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BSkyB sues EDS for €1bn

18.10.2007
Broadcasting giant BSkyB is suing IT consulting firm EDS for over €1bn for allegedly mis-selling a customer relationship management (CRM) project that failed.

The case — one of the largest in IT history — taken by BSkyB alleges deceit, negligent misrepresentation and breach of contract by EDS.

The scale of the claim, £709m sterling, contrasts sharply with the value of the original contract of £48m sterling and is believed to be based on profits allegedly lost.

BSkyB selected EDS in 2000 as systems integrator for a CRM project that it won ahead of PricewaterhouseCoopers.

The broadcaster alleges EDS failed to use any recognised form of time and cost estimation when tendering for the work and just produced a reflection of what it thought BSkyB wanted.

It is being alleged that EDS put forward a sales pitch that it knew was misleading.

The contract was terminated in January 2003 and BSkyB began the legal action against EDS in 2004. It is expected to finish in 2008.

EDS said it will refute BSkyB’s allegations through the course of the trail and defend its position.

By John Kennedy