IT and outsourcing disputes

Analytical and creative - they understand business objectives and find solutions to difficult problems.

General counsel, Sony

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Our experienced team has acted on the full spectrum of disputes in the IT and outsourcing sectors, advising both suppliers and users. We have been engaged on some of the largest and most demanding projects in the world in these fields.

We are acknowledged for our commercial and practical approach to meeting clients’ needs and our ability to pinpoint when to litigate and when to settle. We have considerable experience of mediation and our team includes accredited mediators. At an early stage, we agree the appropriate strategies and tactics with our clients to ensure that all the issues involved are identified and resolved. We pride ourselves on producing accurate costs budgets and adhering to them throughout – following a recent High Court trial in which we stayed within budget, we recovered 95% of our costs from the other side. 

Our IT and outsourcing disputes solicitors can advise on termination of contracts and the problems that may arise from this process. It is critical for businesses to secure the best possible advice to ensure that they are not subsequently exposed to a claim for damages for unlawful termination. 

We have substantial expertise in claims relating to fitness for purpose, where systems supplied have failed to meet requirements, and loss of profits claims arising from such errors. To limit potential outlays, we will provide a frank and robust assessment of the merits of your case as soon as we can. 

IP issues often arise in IT-related claims. Our team has specialist knowledge of software disputes involving copyright infringement and breach of confidence as well as contractual issues relating to software licence disputes. We also have experience of advising on database disputes.

We offer expert advice on:

  • disputes arising during the life of IT and outsourcing contracts, including associated change control negotiations
  • termination of IT and outsourcing contracts and software licences
  • pre-litigation advice and advice on dispute avoidance
  • claims for breach of contract and in particular claims relating to fitness for purpose and failure to achieve required functionality and KPIs
  • claims relating to the design and installation of new systems
  • misrepresentation claims
  • disputes arising from maintenance and support agreements
  • software disputes involving claims of copyright infringement and breach of confidence
  • contractual issues relating to software licence disputes
  • database disputes
  • damages including loss of profits claims

Recent work highlights

On a global level

Representing an international consulting company on a series of disputes with a government department concerning a contract to develop and operate one of the world’s most complex IT systems.


Multi-million pound mediation

Acting for a claimant seeking to recover the cost of a replacement storage solution used in the Connecting for Health project and loss of profits resulting from the system supplied being unfit for purpose. The matter was settled at mediation.


Technology and Construction Court judgment

Obtaining judgment on liability for a client against a major supermarket following a four day trial in a claim for over £1 million for breach of an outsourcing agreement relating to the provision of HR administration and payroll services.

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Penningtons Manches LLP

Penningtons Manches LLP is a limited liability partnership registered in England and Wales with registered number OC311575 and is authorised and regulated by the Solicitors Regulation Authority. San Francisco is an associated office.

Penningtons Manches LLP