Monday, February 13, 2017

According to the court in Amsterdam CGI and Staalbankiers both stabbing dropped into a failed BPO project

According to the court in Amsterdam CGI and Staalbankiers both stabbing dropped into a failed BPO project. They demanded from each other millions of euros damages, but the judge there is no clear culprit identified. Because the agreement also ended even implicitly at any time by mutual consent, and no provision in this connection fees, the court in its judgment Solomon sees no reason to award damages.

Well may CGI still entitled to cash redress if they unexpectedly received a tax assessment for additional VAT costs, writes Quote, who dived in the case . According to the business magazine do not have a decision rendered let both parties know yet to appeal.

The court's decision appears to go to a BPO contract in 2010 between Staalbankiers (a subsidiary of Achmea, acquired by Van Lanschot in 2016). and Logica (now CGI) was signed to support the platform for banking processes in the areas of payments, securities transactions, credit and treasury. Logica took over this platform Centric. This company took over the BPO practice Ordina in 2009; there was also the contract with Staalbankiers at. Centric has subsequently tried in vain to replace the legacy systems of this platform by Thaler software from the Belgian supplier Callataÿ & Wouters (acquired by Sopra in 2012).

Tender
In 2009 Staalbankiers decided to launch a tender to select a new BPO vendor. However, candidates had to base their bid on the Thaler software. Logic won this trip and would take over the services provided by Centric, set up a new infrastructure and finally properly calibrate the software. Staalbankiers dissolved the contract with Centric and ended in early 2011 with Logica an agreement which would run until early 2018. After the separation of the IT infrastructure designed for Staalbankiers those Centric Logic would take over the support of the platform.

The verdict shows that the transition never succeeded, in part because the separation proved more complex than expected, partly because of opposition by centric and partly because the Thaler software not only could be acquired by Logica by contractual obligations between the software and Centric.

derailed
Then came the accusations: Logic wild because of the unexpected additional work from the bank more money and found that the bank Centric put too little pressure. Staalbankiers in turn, reported in turn do not want to pay for undelivered services.

In 2012 the range was completely silent, after which the parties would be in default together. After negotiations, decided to quit the bank in any case with the Thaler software. The discontinuation of the contract with CGI now and Callataÿ & Wouters cost the bank 1.8 million (on top of the project cost of 4.1 million so-called "transformation sunk costs).

In 2013, still an attempt to revive the outsourcing agreement new life, but also stranded. CGI then goes to court and claiming damages of about 22 million; Staalbankiers comes with a counterclaim and wants more than fourteen million back paid by the BPO in this process to CGI.

both debt
However, the court ruled that both parties are to blame for the debacle. From an IT specialist CGI can be expected that "his plan is properly thought through. CGI Staalbankiers was uncalled for entering into the agreement to advise negative about include the appropriateness of Thaler and the potential risks and had to advise her agreement not to engage on this basis. "

Also find the right CGI Staalbankiers should have warned that it was better to stop the execution because of the major problems that gradually emerged as a significantly greater interdependence, an immovable IT system, insufficient cooperative centric and in the vision of CGI to undecided or incorrect acting Staalbankiers.

Staalbankiers may blamed by it despite engage the services of two consultants - had put an order in the market and help the supplier Thaler software that was actually inoperable at that time - Boer & Croon and GARS.

Bank Insinger de Beaufort also in court
Staalbankiers is not the only bank that ended up in court after acquiring the BPO arm of Ordina Centric. As Bank Insinger de Beaufort conducted  a fierce battle with Centric. The bank was frustrated about the failure of the renewal of the back office Ordina and did not go to Centric in 2009. The automation was allowed to assist in the migration to the back office system Europort + Able (formerly Ember).

Meanwhile the bank to court stepped to receive compensation yet for the failed IT project. That put the relations on edge, especially after the bank lingered with payments for the migration work to Centric. There lawsuits follow over and over again. CEO Gerard Sanderink Centric even went to the Dutch Central Bank to force Insinger de Beaufort to pay bills. "I'm not nuts at first ...? I've never experienced, "he told the Amsterdam court in one of the trials in 2010. Until the end of 2012 came the bank, Centric and Ordina an amicable settlement.

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