Trial begins as Co-op accuses IBM over costly IT blunders

Co-op Insurance is suing computer hardware firm IBM for £155m over an apparent failure to deliver a new IT platform for the British financial services provider.

According to technology news site The Register, CIS General Insurance (CISGIL), the insurance arm of the Co-op brand, said that IBM UK had supposedly messed up the Co-op’s Project Cobalt – the insurer’s wider transformation project.

Allegedly, the first stage of the £175m contract had not been delivered by IBM 15 months after its deadline.  

However, IBM said in its defence that it had terminated the agreed contract after the Co-op had failed to pay - the insurer is disputing this.

The trial will be continuing for the rest of the month.