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BSkyB sues EDS for breach of contract

Claims 'deceit, negligent misrepresentation' over CRM deal

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BSkyB has begun legal action against EDS, the giant IT services outfit, accusing it of "deceit, negligent misrepresentation and breach of contract" following the termination of a Customer Relationship Management (CRM) contract with the digital TV outfit. The Rupert Murdoch-backed company filed a claim in the High Court today for "a material amount" two years after the CRM contract was terminated.

In a statement BSkyB explained that in summer 2000, it appointed EDS to design, build and implement a customer service system at its customer contact centres in Livingston and Dunfermline, Scotland.

"The relationship was terminated in early 2002 after EDS failed to perform its contractual obligations," BSkyB said. After the contract was ditched BSkyB brought the work in-house and carried on with the upgrade.

Since 2000, the satellite outfit has ploughed £170m into the CRM project and expects to invest a further £50m over the next four years.

No one from EDS was available for comment at the time of writing. ®

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