HP settles outsourcing case with BSKyB for £318m sterling

9 Jun 2010

Technology giant HP has agreed to pay £318m sterling to BSkyB over a failed IT system that EDS sold the broadcaster over 10 years ago.

Earlier this year a UK court’s decision to tell HP-owned EDS that it had to pay Sky TV £200m sterling for a failed CRM system was hailed as the most important IT-related decision to date.

The original damages that BSkyB claimed for the failed system which was sold to Sky 10 years ago are estimated to have amounted to more than £700m sterling (US$1bn).

EDS, which was acquired by HP in 2008, had been awarded the contract to build a CRM system for Sky in 2000. However, the contract was terminated just two years later.

BSkyB began legal proceedings against EDS in 2004 alleging deceit, negligent representation and breach of contract.

By John Kennedy

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years