by CIO Staff

IBM, Sprint Settle Outsourcing Lawsuit

News
Jul 26, 20061 min
IT Leadership

IBM and Sprint Nextel have reached a settlement agreement to end the lawsuit filed by Sprint in May that charged IBM with not meeting contractual goals for productivity increases that were part of a five-year, $400,000 applications outsourcing pact inked in 2004, Computer Business Review reports.

Financial details of the settlement were not made public, according to Computer Business Review.

Sprint employed a formula to determine the compensation it was owed for IBM’s alleged failure to meet productivity targets, and it requested $6.4 million in its suit, Computer Business Review reports. At the time, IBM expressed some concern with the way the number was derived.

Sprint requested that its suit be tossed out of court, though the settlement terms are currently unknown, according to Computer Business Review.

The two firms will continue to work with each other under the applications outsourcing deal, and they’ll also collaborate on another customer service partnership they agreed to in 2004, Computer Business Review reports.

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