According to this Associated Press article, Sprint has just filed a lawsuit against IBM, claiming that the service provider didn’t meet its "contractually promised productivity improvements for 2005" in computer programming work. It says IBM now owes the subsidiary of Sprint Nextel "at least $6.4 million for 119,000 hours of uncompleted work."
IBM has filed court documents stating that Sprint is using "an incomplete formula for measuring productivity and the amount of hours owed."
The contract between the two companies had gone into effect in 2004. IBM was signed on to "develop and oversee software applications" for the Overland Park client. Sprint had transferred about a thousand employees to IBM as part of the agreement.
This isn’t the only contract Sprint has with IBM. The latter firm is also managing customer service for Sprint in a five-year, multi-billion contract, a deal signed in early 2004.
