EDS Set To File Counterclaim Against BSkyBEDS Set To File Counterclaim Against BSkyB

EDS will seek "millions" from former customer British Sky Broadcasting Group for unpaid bills. An EDS spokesman said Wednesday that the IT services firm is set to file a claim in a London court against the British media company over its alleged failure to pay EDS for work performed on the implementation of a customer-relationship-management system.

On Tuesday, BSkyB sued EDS, claiming in a statement that the vendor botched the project and is guilty of "deceit, negligent misrepresentation, and breach of contract." A BSkyB spokesman declined to elaborate on the charges. EDS won the contract to install BSkyB's CRM system in 2000 but walked away from the deal in 2002 following contractual disputes. The broadcaster's spokesman says the company has since brought installation in-house but has yet to completely implement the system, which is based on applications from Chordiant Software Inc. BSkyB says its efforts to launch the system have cost about $309 million to date.

The EDS spokesman called BSkyB's claims "ludicrous and outrageous," and alleges that the company is using heavy-handed tactics to press its claims. He said BSkyB's suit against EDS "is a smokescreen to distract attention from their inability to implement a CRM system."