Mike Henley, IT outsourcing expert at PA Consulting Group, has given his views on HP’s settlement of the BSkyB-EDS court case. HP has agreed to pay BSkyB a total of £318 million in full and final settlement of a high profile lawsuit over a failed CRM implementation by EDS ten years ago.
Mike comments on what the case means for sales practices and if customer expectations are changing. Mike says that companies are increasingly demanding to know “which people are going to deliver a project” and “what methodology will be used”.
Mike goes on to comment: “This is critical. Businesses are aware of the hazards of buying a brand – it’s much better to know the exact people and that the methodology is proven and demonstrated. There are plenty of cases where clients are even checking out the CVs of the project leaders at the supplier.”
Nevertheless, commission-based selling, which the experts warned encouraged exaggeration from suppliers, is likely to remain. Mike says: “Sales puff will always be involved in these pitches. But the improved intelligence of customers, especially with due diligence, is helping them get the results they expect.”
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