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Will courtroom drama bring changes in procurement?

Alan Cane
Financial Times
20 April 2010

Peter Lumley, senior consultant in IT, PA Consulting Group, is quoted in The Financial Times, Digital Business report. He comments on some of the consequences of the BSkyB vs EDS case, where EDS were hired to install a customer relationship management system for BSkyB which was valued at £50m initially. After waiting 18 months for judgment, a year after the trial finished, BSkyB was awarded £200m as EDS had “fraudulently misrepresented” time taken to design and build the CRM system.

Peter says that as well as carrying out due diligence on its own organisation, the customer needs to vet its potential suppliers. 

He continues: “Buyers need to understand the capabilities of the team that is bidding for the work, not the wider organisation to which they belong: IT suppliers are large organisations: cultures and capabilities vary from department to department and any track record or case study that is cited in a bid means little unless it relates to a project that was carried out by the team that will be delivering the buyer’s contract.”

Peter concludes: “Access to the wider organisation’s skills is not enough – skills and experience cannot be transferred overnight from one team to another.”

You can read the article in full here.

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