IBM faces a legal battle with Southwark Council
Southwark Council sues IBM for £700,000
30 Oct 2009, Sarah Limbrick, Computing
http://www.computing.co.uk/ctg/news/1822707/southwark-council-sues-ibm-gbp700
Southwark Council has launched a £700,000 legal battle against IBM in a row over a new computer system.
The council said it has lost confidence in IBM’s credibility and integrity, and does not believe it will ever be able to have a workable business relationship in future. Now the council is demanding damages of £717,061 from IBM after branding the new system defective.
In 2005, Southwark wanted to install a new computer system allowing different departments to share information through a central repository of key data, called a master data management system, according to a High Court writ.
The council considered a rival system before going ahead with a contract with IBM, running to 19 pages, in which it agreed to pay £259,112 for the IBM Websphere software licence. The council also agreed to pay £99,124 for skilled staff to implement the system, and £67,000 for the final piece of the system, Orchard’s ArcIndex, as well as consultancy services and support and maintenance, it is alleged.
But a preliminary review of the system in July 2007 found problems, including a serious deficiency with a vital system component, Orchard ArcIndex, the writ says.
There were also problems with the user interface, messaging integration, matching strategy, and a lack of reporting capabilities, the writ claims.
The council brands the system unfit for purpose and of unsatisfactory quality, and accuses IBM of failing to use reasonable skill and care when designing and testing the system. IBM also negligently claimed during negotiations that the system would meet the council’s requirements, but these claims were false, and the system could not deliver its requirements, the writ claims.
IBM failed to research solutions after a workshop to resolve problems, the writ says. The council argues that although it tried to mitigate its loss by trying to find a solution with IBM that would make the system work, IBM tried to absolve itself from any responsibility for the software even though the contract for ArcIndex was an essential part of the system, it is alleged.
The writ was issued by Deborah Collins of the council’s legal department.
Computing has requested a comment from IBM.
Reader comments
© Incisive Media Investments Limited 2012, Published by Incisive Financial Publishing Limited, Haymarket House, 28-29 Haymarket, London SW1Y 4RX, are companies registered in England and Wales with company registration numbers 04252091 & 04252093
It's No Secret Anymore. IBM Is Overpriced. No Support. No Quality
It's no secret in the IT profession that IBM is not the place to go if you want a working secure IT infrastructure or application.
For years IBM has been firing its knowledgeable staff and replacing them with unskilled uncaring staff - mostly in India.
Customer support is also just something for your wish list.
Our firm also learned the hard way. After firing IBM we have cut our IT costs by 55% and down time is almost nonexistent.
With IBM hardware being manufactured in Communist China (who knows what is really in the hardware), and software in India, it's no wonder nothing works well (if at all).
The state of Indiana just fired IBM as well. Given more than a fair amount chances, IBM just couldn't get it together.
IBM used to mean quality, IBM can not rest on its laurels forever.
Posted by: Ex_IBM_Customer 30 Oct 2009
What's wrong with IBM?
IBM has a high reputation for quality products and excellent service, built up over many years.
They now seem to have lost focus on customer service, quality solutions, and on motivating their staff, judging by recent experience.
Posted by: Concerned user 02 Nov 2009
IBM has truly lost the plot
IBM has changed from being a company that gave great customer service and had great respect for the individual including employees to a company that is run by short-termist executives who are solely interested in becoming even more obscenely rich with no care for the long term future of IBM. You just have to look at this forum http://www.amipp.org.uk/phorum5/list.php?23 to understand how IBM is demoralising its employees.
Posted by: Retired IBM UK employee 02 Nov 2009
IBM can not execute on their business commitments
The ability for IBM to execute on their business is non-existent. They trimmed fat and now have no value. Fat in this case being experience and ability.
Posted by: anon 02 Nov 2009
You cant blame Indians for IBM
It is down to how IBM manages its clients and nothing to do with software developed in India. Give some evidence before you blame outsourcing to India!
Posted by: indiansoftwareconsultant 05 Nov 2009
Goverment rely on contractors to use the best technologies?
Yes it's true that's the offical line. I wonder does IBM understand this? Or do they rub their hands with glee and impose their acquired old disconnected technologies with guaranteed lock-in and hope the customer notices too late. Well done Southwark for standing up to them. Let this be a warning to others not to blindly believe suppliers are there to help you .They are there to help themselves, never forget it!
Posted by: David Chassels 11 Dec 2009