BT to sue council over "unlawful" contract termination

Discussion in 'News' started by Kitkatninja, Feb 8, 2009.

  1. Kitkatninja
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    Kitkatninja aka me, myself & I Moderator


    BT to sue council over "unlawful" contract termination

    BT says it is suing Essex County Council after the supplier claimed that the local authority terminated its IT outsourcing contract illegally.

    Essex brought in BT four years ago in a bid to save money, but council leaders have decided to end the arrangement and bring IT back in-house.

    A spokesman for BT said: "We are disappointed Essex County Council has unlawfully terminated our contract. Having discussed the position with our lawyers, we can confirm we will be seeking substantial damages."

    The contract still had three and a half years to run.

    Public sector union Unison claimed that the authority stood to lose millions of pounds after ditching the deal.

    In a report last year, Unison said that council staff were unhappy with the way the work was being carried out by BT.

    Read the rest of the article here.

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    1. NightWalker
      The council must have been pretty unhappy with BTs work to terminate a contract prematurely. You can bet the councils' own lawyers had a good look at the small print before any action was taken. Outsourcing your IT may seem like a great money saving idea, until you discover you have little control or say in the direction your IT goes.
    2. zebulebu
      Outsourcing isn't a good fit for most companies with more than about twenty staff. There are some exceptions where its beneficial, but in the main its just initiated by some bean-counting prick who has no vested interest in the company's long-term future - they just want to cut some money off the immediate bottom-line, stick it on their CV, get an enormous bonus then f*** off to the next company and do the same thing. Somehow, it seems that the average executive team hasn't heard about the absolute carnage that outsourcing often leaves behind, because the merry-go-round never seems to end - there seems to be no end of firms/organisations/government bodies out there ready to be stripped bare of all their IT assets and expertise.

      I remember once hearing a line in a film that I thought could be applied to outsourcing pretty well:
      "Lets rob everybody blind and f*** off to Mexico because nobody ever thought of that before"
    3. Sparky
      Some customers I look after have around 100 staff and out sourcing hasnt hurt them. All of the networks I have inherited from companies with in-house IT staff have had major design flaws and problems to deal with from day one.

      To be honest if the in-house IT staff are motivated and are always looking for ways to improve the network then they should (hopefully) have nothing to fear. The in-house staff that have taken the network as far as they can seem to lack motivation and let problems mount up before leaving or getting paid off.
    4. Kitkatninja
      Or the quality...

    5. onoski
      We currently have our network fully outsourced and one in house man that runs errands and the quality from the outsource company is very poor.

      My manager regrets having giving them the contract, well this is not to say that all outsource firms are the same but would think this is the general consensus:)
    6. Sparky
      Well bring it back in-house then. :biggrin
    7. drum_dude
      Could this be the beginning of the end of out-sourcing?? I hope so!

      As for in-house IT, it's usually the manager's that are the problem. All in-house IT bods I've met are usually quite motivated and know the flaws, it's just that the management are either incompetent, penny pinching or both!
    8. Sparky
      Best to get rid of the management and outsource that then.

      Gotta outsource something! :biggrin

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