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The relationship between the UK''s Inland Revenue and Electronic Data Systems (EDS), for the outsourcing of Inland Revenue''s IT services, was a flagship public-private partnership. It was considered a success until the disastrous introduction of a complex IT system for new tax credits which left hundreds of thousands of claimants awaiting money they were owed. The fiasco attracted nationwide media coverage and became subject to a public inquiry, which is the focus of this case. The public hearing, where representatives from Inland Revenue and EDS faced a grilling from MP''s, was a crucial moment in the relationship. In the week following the public hearing, Inland Revenue was to announce whether EDS had been successful in renewing the £4 billion outsourcing contract for a further 10 years. The case highlights the challenges that leaders of private and public sector organisations face in managing business relationships between sectors, and the importance of relationship management in making partnerships succeed.