News
News
6/1/2006
11:45 AM
50%
50%

Sprint Sues IBM Over Failed Outsourcing Deal

Telecom firm asks for $6.4 million, charging that IBM didn't handle application development as promised.

When outsourcing deals go bad, someone usually gets mad. Sprint also wants to get paid, filing a lawsuit charging that IBM didn't deliver the cost savings promised under a five-year, $400 million outsourcing deal involving computer programming. Sprint wants $6.4 million for 119,000 hours of uncompleted development work. Sprint transferred around 1,000 of its IT staff to IBM as part of the original deal, but has since brought back around 400 workers and taken back control of its application development. IBM wouldn't comment on the suit, but the two companies remain on speaking terms. IBM's still doing a lot of work for Sprint under other contracts.

Comment  | 
Print  | 
More Insights
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest, Nov. 10, 2014
Just 30% of respondents to our new survey say their companies are very or extremely effective at identifying critical data and analyzing it to make decisions, down from 42% in 2013. What gives?
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of November 16, 2014.
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.