Hertz Sues Accenture For Breach Of Contract Over “Seriously Deficient” Web Design Work

According to a recent report, Hertz Corporation – a car rental company sued Accenture. The lawsuit states that the case was filed due to a breach of contract from Accenture’s end for not delivering a competent website as was expected by Hertz.

The lawsuit was filed by the firm Hertz in the southern district of New York district court. It is reported that US$32 million dollars were spent on the project. However, Accenture has failed to successfully produce a website according to the expectations of Hertz. The project was in the execution phase in the year 2016. It came to a halt with Hertz terminating Accenture’s service in the year 2018 due to shortcomings from Accenture’s end. The lawsuit was filed by Hertz under the Florida Deceptive and Unfair Trade Practices Act, for breach of contract and violation against Accenture.

The car rental company Hertz did not have enough resources to execute a project on its own to meet the growing demands of customers in terms of digital experience. Hertz had to look for a company to build a website and mobile application that catered to the need of car rental users, which was why the project was given to Accenture. With the growing need of customers using online services, the delay by Accenture for a period of more than 2 years has slowed down the business of Hertz according to the lawsuit.

The website was to be launched in the year 2017 and was given extension two times to be launched in January and April 2018 respectively, which obviously failed due to inaction from Accenture. There were many lapses including the neglect of building medium sized websites that were suitable for tablets and Hertz was looking forward to software that worked exclusively in smartphones and desktops. The result given by Accenture was ‘deficient’ in many areas according to Hertz and the company had totally lost confidence in Accenture post the delay in the execution of the project. The lawsuit also states that apart from being short of the expected standards there were also serious issues like “security vulnerabilities and performance problems.”

Though Accenture fell short in terms of providing good standards there was an additional cost demanded in thousands of dollars apart from the agreed cost. The lapse from Accenture’s end has resulted in a huge revenue loss. Hertz stated that it makes their condition difficult especially when the market trend is very competitive in nature. The company claims that they had to spend thousands of dollars to identify and remediate the defective system produced by Accenture.

Though much detail could not be extracted on this issue, Hertz reports that the lawsuit was filed to reclaim the expenses and loss incurred by them due to the inefficiency and failure of Accenture in providing a product agreed by them to be delivered within the stipulated date.

In reply to the allegation to the lawsuit, Accenture has negated it saying that the lawsuit was filed “without notion” and expressed its confidence to prove its point in the court.

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