HCL Tech, one of the leading offshore IT and Software development service provider, is being sued for over $100 million by its client MillerCoors. The Chicago-based company has sued over a breach of contract and claimed that HCL has failed to meet the deadline of its project.
The case was filed by the company in Illinois federal court on March 13. The company also alleges that HCL Tech failed to perform on a SAP upgrade contract it won in the year 2013.
As per reports, the Chicago-based brewer has demanded that the case is heard by a jury. It appears that the contract was then worth about $53 million and an additional $9.6 million was added to the contract price to adjust for time frames. The filing also said that “HCL was unable to adequately staff the project and maintain the project schedule”.
By filing a case against HCL Tech, MillerCoors is seeking “compensatory damages in an amount to be determined at trial in excess of $100,000,000.” The filing said that the brewer terminated the contract in June and said it would seek a new supplier.
According to the filing, the said contract “was aimed at driving efficiencies, innovation, and growth across MillerCoors’ various breweries by adopting a common set of best practices business processes and implementing them in a new enterprise SAP software solution.”
However, this isn’t the first time an Indian IT company is facing such issues. Earlier, in 2013, TCS was sued by the U.S. district Orange County over replacement to the county’s automated property tax system that initially was to have been completed in 2010 but was not delivered. The company finally settled the suit for $26 million in 2016.
