TechnologyEDS signs ‘failure clause’

EDS signs 'failure clause'

IT services giant EDS has been forced to sign a 'failure clause' so that it can continue to pitch for the £4bn MoD contract.

The clause – if it came into effect – would force EDS to hand over control of the MoD’s systems if a computer ‘meltdown’ was to occur.

‘If the system crashes, and EDS is deemed incompetent, the MoD has the ability to take work away from us and give it to our second partners, Fujitsu,’ EDS defence MD Graham Lay told the Daily Telegraph.

EDS is battling for the contract against a consortium known as Radii, which is headed by CSC and includes BT and Thales.

Last November, EDS was lambasted after a vital computer system crashed at the Child Support Agency, and it also lost its lucrative Inland Revenue IT services contract to Capgemini in 2004, following a series of IT disasters.

Related Articles

HMRC outlines points-based penalty model for MTD

MTD HMRC outlines points-based penalty model for MTD

4d Alia Shoaib, Reporter
GDPR: How legitimate are your legitimate interests?

Regulation GDPR: How legitimate are your legitimate interests?

1w Ian Singer, PKF Littlejohn
Viewpoint: Making Tax Digital is not all doom and gloom

Making Tax Digital Viewpoint: Making Tax Digital is not all doom and gloom

2w Brian Palmer, AAT
Treasury cracks down on Bitcoin amid tax evasion concerns

Regulation Treasury cracks down on Bitcoin amid tax evasion concerns

2w Alia Shoaib, Reporter
AVADO wins award for online ACCA courses

Career AVADO wins award for online ACCA courses

2w Alia Shoaib, Reporter
The role of the accountant as productivity and technology leader

Technology The role of the accountant as productivity and technology leader

2w Receipt Bank | Sponsored
Accountancy in the digital age: Flexibility, agility, efficiency

Accounting Software Accountancy in the digital age: Flexibility, agility, efficiency

3w Pegasus Software | Sponsored
How to get your clients ready for the cloud

Cloud How to get your clients ready for the cloud

3w Sage | Sponsored