BSkyB v EDS: Avoiding "Joe Galloway" Syndrome

The long running case between British Sky Broadcasting ("Sky") and Electronic Data Systems, now HP Enterprise Services ("EDS") has now finally been decided in a decision that has taken 15 months alone for the judgement to be released.

In his recent 468 page judgment, Mr Justice Ramsay of the London Technology & Construction Court (a division of the English High Court) recently ruled that major IT and outsourcing provider EDS was partially liable to Sky in relation to the failed implementation of a new customer care or "CRM" system. Sky are now anticipated to be awarded damages in excess of £200 million. We summarise the facts and the outcome of the case below.

The Facts

Following an extended tendering process, in November 2000 Sky entered into a CRM implementation contract with EDS to refresh their subscriber and customer relationship systems. The implementation services under the contract were priced at initially £48 million and the contract had a liability