AECOM-IBM: Inside source claims legal battle has begun

A source close to the deal has told Computing that AECOM wants to fire IBM, while IBM is demanding payment for early termination

The troubled outsourcing deal between construction giant AECOM and IBM has already dissolved into a legal battle, with both sides allegedly looking to sue one another, a source close to the deal has claimed.

"IBM wants out and AECOM wants to fire IBM, so they've both got lawyers involved to debate who should pay what," the source claimed. "I understand that IBM wants AECOM to pay for early termination, while AECOM wants to have IBM pay for business disruption."

IBM wants out and AECOM wants to fire IBM

The source added that the mood within the IT department at AECOM has worsened, and that service levels are extremely low.

"My team can't believe that the mood has got even worse. They can't understand why the business hasn't revolted, and why no one is standing up to [senior advisor to the office of the chairman at AECOM, and a senior leader on the outsourcing deal] Jeff Stein.

"Some people have left because they can't get their jobs done, others just got used to poor service."

Some people have left because they can't get their jobs done, others just got used to poor service

They added that shadow IT has become the default way of provisioning technology for some, as trust in the ability of IBM to deliver what they need has become so low.

"Some have gone out to buy competing products, for instance using AWS and Google, and taking control of their own IT. They're going around IBM rather than trying to work with them."

AECOM first announced the $2.3bn deal in January 2017, but the situation quickly soured, with many inside sources contacting Computing to discuss poor communication, project delays, and rock bottom morale.

More recently, sources have claimed that the deal is close to termination, with one stating that it will be cancelled this Spring.

Computing has produced a timeline of everything we've learnt about the deal so far.

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