ScanSource logoScanSource, which distributes POS and barcode products, has sued Avanade for alleged bait-and-switch practices for a Dynamics AX implementation it claims Microsoft concluded was faulty. The plaintiff said has the project has ballooned from an initial cost estimate of $17 million to nearly $66 million and an installation of 11 months to three years with the system not yet live.
It is expected to require more than $29 million to complete. The suit was filed this week in U.S. District Court in Atlanta. ScanScource, based in Greenville, S.C., contracted with Avanade in 2009 for the AX job, which it says is one of the largest global enterprise-level AX implementations. Avanade has no comment other than it believes the allegations are without merit. ScanSource alleges fraud, tortious misrepresentation and breach of contract, and seeks tens of millions of dollars in damages, The suit says Avanade claimed to have the trained personnel necessary for the job, but knew it did not and “provided ScanSource with a revolving door of consultants who knew little or nothing about implementing Microsoft Dynamics AX software or managing large-scale global ERP projects.” The result was Avanade’s writing a “staggering 500,000 lines of software code it wrote in an attempt to have the Microsoft Dynamics AX platform meet ScanSource’s business requirements”. Despite the length and cost, ScanSource said it descoped the project and maintained some of its legacy applications to keep running. In quality assessments, both Microsoft and Accenture concluded the project had been mismanaged, the suit claims. Microsoft and Accenture co-own Avanade with the overwhelming interest owned by Accenture.
Last modified on Sunday, 16 June 2013
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Bob Scott

Bob Scott has been informing and entertaining the mid-market financial software community with his email newsletters for 10 years. And he has been covering this market through print publications for 18 years, first as technology editor of Accounting Today and then as the Editor of Accounting Technology from 1997 through 2009. He has covered the traditional tax and accounting profession during the same time and continues to address that as executive editor of the Progressive Accountant.

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