May 28, 2006
Dispute between Sprint and IBM on Outsourcing
When Sprint started business with IBM, it was confident that outsourcing IT jobs to IBM would improve the company's software, increase productivity and ensure cost saving for the company. However, situation has taken an interesting turn with Sprint suing IBM over the loss incurred by the company because of outsourcing to IBM. According to Sprint sources, IBM failed to meet contractual promises for productivity improvements. Kansas City reports:
In its simplest form, Sprint executives contend that IBM owes them for about 119,000 hours of uncompleted work. That is the equivalent of 57 years’ work for a single employee.
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