A dispute over a 10-year outsourcing contract, valued at £260 million, signed just two years ago between Cornwall Council and BT has been escalated to the High Court.

After issuing BT with an ultimatum back in May, Cornwall Council is looking to terminate the contract altogether. However, BT has sought a High Court injunction to prevent that outcome.

The original agreement stated that BT would takeover IT, HR and other back office services on behalf of the council. The costs involved in a contract of this nature are often front-end loaded, meaning that BT could wind up with big financial losses if Cornwall Council successfully terminates the deal.

It is thought that the council originally rushed to close the deal in the build-up to local elections in 2013, meaning that crucial negotiation stages were rushed.

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