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The suit further alleges that Avanade's inability to provide accurate estimates caused ScanSource to "de-scope" some of its minimum business requirements in order to reduce the escalating costs and keep on schedule, according to ScanSource.
"As a result of this de-scoping exercise, ScanSource had to retain some of its legacy applications to perform certain processes that the new Microsoft AX system was supposed to handle. For other de-scoped functionality, ScanSource was required to write its own applications to fill the gaps," ScanSource alleges in the statement.
The suit also states, "By forcing ScanSource to de-scope functionality, Avanade performed a classic bait-and-switch on ScanSource. Specifically, after being engaged on the project for only a few months, Avanade drastically increased its fees estimate, thereby forcing ScanSource to make the following choice: either pay substantially more for functionality that Avanade was supposed to deliver as part of the initial quote, or forego that functionality to reduce a ballooning budget far in excess of what Avanade had represented and agreed to."
During the project, Microsoft and Accenture performed quality assessment reports, and both companies concluded the project was being mismanaged and made recommendations, according to ScanSource.
"The Microsoft quality assessment, which focused primarily on software development, documented hundreds of 'Issues' with the Avanade-developed code. Many of these problems were characterized as 'Must Fix Issues.' Microsoft further criticized the manner by which Avanade altered the core Microsoft AX code, noting that 'even single methods have multiple developers' and that '[v]ery commonly, base classes, forms and tables have been modified,' increasing the costs of future upgrades" and maintainability of the system," according to ScanSource in the lawsuit. "Among other criticisms of the project, the Accenture quality assessment noted that the Project could not be completed without additional fees of $22.5 to $29 million, and resource commitments totaling 11,504 workdays."
ScanSource has signed with another company to mitigate the damages and harm caused from the project, according to the distributor, and plans to complete the Microsoft Dynamics project, the company said. That provider, which ScanSource did not want to identify, is in the process of assessing how much time and cost will be needed to complete the project, said John Ellsworth, general counsel for ScanSource.
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