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Bitter Break Up for Sears and IT Service

5/17/2005

New York City, Sears, Roebuck & Co.’s massive IT outsourcing contract with Computer Sciences Corp. to manage its computer and phone networks and Web sites has descended into finger-pointing and acrimony. Computer Sciences has said the retailer ended the $1.6 billion contract to avoid paying millions in termination fees. Previously, Sears said that it canceled its 10-year deal with Computer Sciences because the contractor failed in certain duties, charges that Computer Sciences denies. A federal judge denied Computer Sciences’ suit to stop Sears from ending the contract for cause, Sears said Friday.

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