Sprint has filed suit against IBM for allegedly failing to meet “contractually promised productivity improvements for … 2005,” causing the telecommunications company to lose money instead of save it as a result of their outsourcing deal, The Kansas City Star reports.Sprint contends that PC giant IBM owes it compensation for roughly 119,000 hours of uncompleted work, or 57 years of employment for a single individual, and the telecom firm is asking for $6.4 million, according to the suit filed in U.S. District Court in Kansas, the Star reports.At the center of the suit is a 2004 five-year contract worth $400 million, in which Sprint hired IBM to provide IT services, according to the Star. That contract was later extended to include software application development and maintenance, and about 1,000 Sprint IT workers were shifted to IBM, the Star reports. IBM was to provide the support “through the use of IBM personnel or IBM subcontractors located both in the United States and abroad,” according to the Star.Sprint claims IBM missed the targeted 6.4 percent productivity increase in 2005 by “a wide margin,” but IBM says the formula used to derive the amount of uncompleted work, and in turn, the amount of damages owed, is not complete, the Star reports. Though Sprint has shifted some application development back within the company, IBM still does some IT work for the telecom firm as part of a contract that’s valid until 2011, a Sprint spokesperson told the Star. IBM also handles customer service support for Sprint under another five-year contract worth $2 billion, and that contract will likely be extended, the Star reports. The Sprint spokesperson told the Star that the company plans on sticking with IBM for outsourcing services in the future.Check out our CIO News Alerts and Tech Informer pages for more updated news coverage. Related content feature The NBA’s digital transformation is a game-changer The National Basketball Association’s move to Azure cloud is helping improve fan experience and in-game performance due to analytics- and AI-assisted tools aimed at unlocking data’s full potential. By Paula Rooney Jun 07, 2023 9 mins Microsoft Azure Media and Entertainment Industry Digital Transformation case study How Palladium targets tech to better serve the business Palladium Hotel Group has prioritized strategies surrounding its digital transformation, with a focus on two primary objectives: to improve the business and better customize the customer experience. By Nuria Cordon Jun 07, 2023 4 mins CIO Travel and Hospitality Industry Digital Transformation Saudi Vision 2030: Why the Kingdom is becoming a hub in EdTech education By Andrea Benito Jun 07, 2023 5 mins brandpost From edge to cloud: The critical role of hardware in AI applications The rise of generative artificial intelligence By Broadcom Jun 06, 2023 5 mins Machine Learning Artificial Intelligence Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe