BSkyB files lawsuit against EDS over £61m contract

LONDON – BSkyB is taking legal action against Electronic Data Systems for deceit, misrepresentation and breach of contract after a £61m customer relationship management contract was not upheld.

Under the two-year contract, signed in November 2000, EDS was to provide BSkyB with CRM and build a customer call centre.

The EDS contract was a substantial part of BSkyB's £170m investment in CRM since 2000 but the deal was terminated in December 2002, when the satellite broadcaster decided to do the work itself.

James Murdoch, the chief executive of BSkyB, has announced plans to invest heavily in CRM, marketing and infrastructure over the next three years to meet forecast subscriber numbers.

EDS suffered another damaging blow at the beginning of the month when it lost its contract with Dow Chemical Company to IBM.

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