BSkyB plans lawsuit against EDS for contract breach

LONDON – BSkyB is set to take legal action against US electronics company EDS over a disputed customer relationship management contract worth £61m.

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

In its annual report published last week, Sky said it would seek a "material amount" to compensate for problems with its CRM systems.

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

Sky said: "The group anticipates issuing and serving a claim in the near future for a material amount against an information technology solutions provider, which has provided services to the group as part of the group's investment in customer relationship management."

EDS confirmed: "Sky has asserted a contractual claim over the deal."

The disclosure comes as James Murdoch, the Sky chief executive, 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 last week when it lost its contract with Dow Chemical Co to its rival, IBM.

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