BSkyB in dispute with EDS over CRM system

British Sky Broadcasting (Sky) is considering legal action against EDS over a £60m customer relationship management (CRM) contract.

In its annual report, published last week, Sky says it will seek a 'material amount' to compensate for problems with its CRM systems.

The EDS contract was a substantial part of Sky's £170m investment in CRM since 2000, but the deal was terminated in December 2002, with the broadcaster choosing to do the work itself.

Sky says in its report that: 'The group anticipates issuing and serving a claim in the near future for a material amount against an information technology solutions provider, which has provided services to the group as part of the group's investment in customer relationship management.'

The disclosure comes as Sky chief executive James Murdoch announced plans to invest heavily in CRM, marketing and infrastructureover the next three years.

A spokesman for EDS says the company will 'vigorously defend' any legal action from Sky.

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