May 27, 2006
Outsourcing deal gone sour: Sprint Nextel files lawsuit against IBM
Just a few days earlier, IBM was voted as the leading outsourcing company in the list of 100 top global companies. However, the IT giant is now facing the wrong side of outsourcing. According to a report published by the Kansas City Star, IBM's outsourcing partner Spring Nextel, a telecomm company, is seeking damages of more than $6 million over an outsourcing agreement that did not meet expectations.
According to Spring Nextel, IBM owes nearly 120,000 hours of work and has failed to increase productivity by 6.4 percent. This claim is being contested by IBM. While the two companies battle it out on this front, they continue to work together on other contracts.
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