Outsourcing Tracker: Unhappy Customer Sues IBM - InformationWeek
IoT
IoT
IT Leadership // IT Strategy
Commentary
5/26/2006
04:29 PM
Tom Smith
Tom Smith
Commentary
50%
50%
RELATED EVENTS
Faster, More Effective Response With Threat Intelligence & Orchestration Playboo
Aug 31, 2017
Finding ways to increase speed, accuracy, and efficiency when responding to threats should be the ...Read More>>

Outsourcing Tracker: Unhappy Customer Sues IBM

I've predicted before that failed outsourcing contracts will become commonplace enough that we'll find more and more companies dumping their outsourcers. The last example, cited just nine days ago, was Diebold dumping Deloitte Consulting.

I've predicted before that failed outsourcing contracts will become commonplace enough that we'll find more and more companies dumping their outsourcers. The last example, cited just nine days ago, was Diebold dumping Deloitte Consulting.Now we have another, uglier example. IBM is being sued by Sprint Nextel, which is seeking $6 million in damages for failure to live up to expectations. Now $6 million may be a drop in the bucket for IBM, but this is part of a five-year, $400 million outsourcing pact that's anything but a drop in the bucket. The future of that deal could be tenuous if a key piece of it has wound up in litigation. Sprint Nextel has already reduced the amount of work allocated to IBM.

For its part, IBM is maintaining the ultimate stiff upper lip, as a spokesman was quoted as saying, "...IBM continues to have a significant and healthy relationship with Sprint."

Memo to IBM and Sprint Nextel: Lawsuits aren't a good indicator of significant, healthy relationships.

Comment  | 
Print  | 
More Insights
Comments
Oldest First  |  Newest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll