EDS is to fight back against BSkyB, the UK satellite TV outfit, which yesterday announced it was sueing the computer services firm over a disputed contract.

Commenting on BSkyB's legal action, Malcolm George, EDS's head of communications in the UK, said: "This is an outrageous claim. It's pie-in-the-sky. We will vigorously defend the action and expect to bring a counter claim for several million for unpaid bills."

Yesterday, BSkyB issued a writ, accusing EDS of "deceit, negligent misrepresentation and breach of contract", following the termination of a Customer Relationship Management (CRM) contract with the digital TV outfit.

BSkyB appointed EDS in 2000 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. ®

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