PDI in shock after losing MS contract

Training manual supplier PDI was understood to be reeling last week after the company lost its lucrative deal with Microsoft.

It was revealed that Microsoft decided to phase out its exclusive contract with PDI, which made up about 70 per cent of PDI's business, after accepting a bid by German company Bertlesmann which undercut it by about #9 million.

One insider told PC Dealer: 'It is substantially impacting on our situation. We are desperately disappointed, but we have other business we can concentrate on and develop.'

He claimed the decision announced by Microsoft came as a surprise to the six-year-old company, which started solely to print and supply its training manuals. It began with five staff and enjoyed huge growth to its present level of 100 staff.

'PDI is devastated. It still has a contract with Microsoft that is running over the summer. We're working away and life goes on,' said the source.

Microsoft IT skills development manager Debbie Walsh said some requirements for course material had changed and the software developer wanted to focus on online material and courses broken into modules.

'When we went into this six to nine months ago, we found PDI are a lot more expensive,' claimed Walsh. She said PDI retained a contract to supply some course material to Microsoft and expected the company to shift staff to different areas that it was developing.

Julia Jones, director of education and training at Ilion, said: 'It's a shame PDI has been chopped. Rob Weller was our account manager and he did a good job.' Weller, who looked after the Microsoft account, is on holiday this week, but is expected back to see out the Microsoft contract.

Amanda Fyfe, PDI's CEO, refused to comment because Microsoft's contract has not finished. She insisted no jobs had been lost.