The number of claims against IT contractors is rising, according to law firm Reynolds Porter Chamberlain (RPC).
RPC partner Alex Anderson said that while professional indemnity (PI) claims against IT contractors are on the increase, the problem has been hidden as most are settled out of court.
A recent announcement from Sky that it is to sue EDS for an allegedly faulty IT system has shown that client companies are increasingly likely to take legal action if contractual obligations are not met.
According to RPC, the two circumstances in which clients are most likely to bring a claim are, if a project does not meet operational specification or if a project exceeds a time limit.
Anderson said, “The number of claims against IT contractors I have advised on in recent years has risen markedly and I would expect that trend to continue”.