HP Gets Caught Up in EDS Lawsuit

HP Gets Caught Up in EDS Lawsuit

Various high tech firms tend to get involved with consulting, mainly because it is much profitable and a natural adjunct to sale of products. During the 1990s, IBM managed to make an amazing and remarkable business recovery by mainly moving into IT services and consulting, and moving away from a product-centered focus.

Last fall, Dell officially announced that it would purchase Perot Systems.

For various consecutive quarters, EDS emerged as a smart purchase by HP, as the company's service unit was the only growing business line. But the takeover came with some extra baggie, which included a lawsuit.

"EDS and one of EDS's subsidiaries are defendants in litigation filed in the United Kingdom by Sky Subscribers Services Limited and British Sky Broadcasting Limited (BSkyB) in 2004 relating to a customer relationship management project that was awarded to EDS in 2000. At a court hearing held on March 1, 2010, the court ordered EDS to make an interim payment to BSkyB of £70 million, or approximately $112 million, which is in addition to an interim payment of £200 million, or approximately $320 million, that HP made voluntarily to BSkyB in February 2010", HP shared in a recent news release.

HP now plans to appeal the decision.

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