Wipro hands $75m to National Grid US after botched SAP upgrade

Pair settle out of court over failed project that cost utility firm hundreds of millions The Register – by Rebecca Hill – IT consultancy Wipro has paid National Grid US $75m to settle a lawsuit over a botched SAP implementation that cost the utility firm hundreds of millions to fix. National Grid US, which supplies electricity and gas in Massachusetts, New York and Rhode Island, wanted to replace legacy back-office systems with a SAP platform. It hired Wipro in the role of systems integrator in 2010, paying some $140m for the work. But errors in the rollout saw staff and vendors paid incorrectly and prevented the firm from producing crucial financial reports. This led to state investigations, employee settlements, plenty of negative PR and major losses. For instance, staff were ultimately overpaid by about $8m, while efforts to stabilise the system were costing National Grid US about $30m a month to a total outlay of more than $300m. A 2014 audit estimated the upgrade could end up costing National Grid $1bn. National Grid US pinned the blame on Wipro, flinging a sueball at the Indian consultancy at the end of last year with an eye to recoup the $140m as well… continue reading

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