Qwest Terminates Its Contract With Vsource

Vsource Inc. in Ventura, which sells an Internet procurement system for businesses called Virtual Source Network, said its relationship with Qwest Communications has ended.

Vsource said it will focus its efforts on developing its IBM alliance and pursuing other partners that are better suited to support its business strategy.

“The US West regional sales channel acquired by Qwest was intended to support [Virtual Source Network] sales in a 14-state region,” said Robert “Jay” McShirley, Vsource chairman and chief executive. “Qwest is an international company, but it is our belief that a regional sales force will not be able to support the need for national sales coverage, which was the intent of a Vsource/Qwest relationship.”

Qwest said the Vsource agreement was inherited in the company’s June 30 merger with US West.

It said it decided “it was not in its strategic interests as a broadband Internet company to continue the relationship” with Vsource and that it notified Vsource earlier this month of the contract’s termination.