In its lawsuit, Sprint claimed that IBM hadn’t met the contractual targets for boosting productivity. The telecom carrier, using a formula to compute the amount of uncompleted work under the deal, was seeking at least $6.4m from IBM. IBM then disputed the way Sprint calculated the figure.
It’s not clear how the claim was resolved, but Sprint asked a federal judge to throw out the suit. Sprint and IBM will continue to work on the applications deal, as well as a larger, multi-billion-dollar customer service agreement they also signed in 2004.
This January, in a sign that the applications contract was perhaps hitting some snags, Sprint announced that it was taking a portion of the work under the contract in-house and rehiring some of the 1,000 employees that transferred to IBM as part of the original deal. Sprint said IBM would continue to perform some development and maintenance services under the deal.
